sebi:Order/AS/RM/2024-25/31059-31061

SEBI · SEBI · 2023-08-22 · Asha Shetty, Adjudicating Officer

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Facts / Headnote

Penalty imposed on Noticees 1 and 3 for violations of ICDR Regulations, 2018; Noticee 2 not held liable

Provisions invoked

• s. 11B
• s. 11
• s. 15A
• s. 15
• s. 19
• s. 15H
• s. 27
• s. 15J
• s. 15F
• s. 28A
• s. 27(1)
• s. 81
• s. 24(1)
• s. 127
• s. 78
• s. 1(2)
• s. 36

Regulations

• Reg. 13
• Reg. 2(1)
• Reg. 42
• Reg. 2
• Reg. 201
• Reg. 3
• Reg. 23(1)
• Reg. 2(1)(w)
• Reg. 70(3)
• Reg. 2(2)
• Reg. 24

Parties

• EbixCash Limited (Noticee 1)
• Ebix Singapore Pte. Ltd. (Noticee 2)
• Ebix, Inc. (Noticee 3)

Holding

The Adjudicating Officer held Noticee 1 (EbixCash Limited) and Noticee 3 (Ebix, Inc.) liable for violations of Regulation 42 read with Paragraphs 1, 4, 5 and 6 of Schedule IX of the ICDR Regulations, 2018, read with Section 27(1) of the SEBI Act, and imposed a penalty of ₹6,00,000 jointly and severally. SEBI was found to have jurisdiction over the matter despite withdrawal of the DRHP, and Noticee 2 was not held liable.

Full text

Adjudication Order in the matter of proposed IPO of Ebixcash Limited Page 2 of 78 APPOINTMENT OF ADJUDICATING OFFICER 2. SEBI appointed Mr. Shashi Kumar Valsakumar, Chief General Manager as Adjudicating Officer in the matter vide order dated August 22, 2023. Pursuant to the transfer of the erstwhile AO, undersigned was appointed as the Adjudicating Officer, vide order dated July 22, 2024, under Section 19 of the SEBI Act read with Section 15-I (1) of the SEBI Act and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as ‘SEBI Adjudication Rules’) to inquire into and adjudge under the provisions of the Section 15HB of the SEBI Act for the violations alleged to have been committed by the Noticees.

Adjudication Order in the matter of proposed IPO of Ebixcash Limited Page 3 of 78 6. The gift card business/Prepaid Payments Instruments (PPI) business conducted by direct subsidiary of the Issuer Company, Ebix Payment Services Private Limited (Ebix Payment), is under the regulatory purview of RBI. It was noted that RBI has issued a "Letter of Displeasure'' dated March 21, 2023 to Ebix Payment for violation of the provisions of RBI’s PPI-MD dated August 27, 2021 & misreporting of PPI data and advised the entity to amend its agreements with banks within a month.

Adjudication Order in the matter of proposed IPO of Ebixcash Limited Page 4 of 78 2018 including Schedule IX- Public Communications and Publicity Materials of ICDR Regulations, 2018, at all times.

Source: SecMarx — sebi:Order/AS/RM/2024-25/31059-31061. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.