sebi:Order/BD/AB/2020-21/10390-10393

SEBI · SEBI · 2017-04-20 · B.J. Dilip, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violation found; monetary penalty imposed

Provisions invoked

• s. 15A
• s. 15
• s. 12A
• s. 15H
• s. 15J

Regulations

• Reg. 3(a)

Parties

• J C Enterprise
• New Fashion
• Vora Associates
• K V Impex

Holding

The Noticees violated Regulations 3(a), (b), (c), (d) and 4(1) of the PFUTP Regulations read with Section 12A(a), (b) & (c) of the SEBI Act by acting as conduits for siphoning BPML IPO proceeds, and a monetary penalty of Rs. 20,00,000 each was imposed under Section 15HA of the SEBI Act.

Full text

Page 2 of 11 Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter be referred to as "PFUTP Regulations") read with Section 12A(a), (b) & (c) of the Securities and Exchange Board of India Act, 1992 (hereinafter be referred to as "SEBI Act")

Page 3 of 11 1st Layer Fund flow out of IPO proceeds from BPML's account Date From(Name) To(Name) -1st layer Sum of Amt (Rs.crore) July 06, 2011 BPML's Yes Bank a/c No. 4840000358384 J C Enterprise 2.00 July 06, 2011 K V Impex 2.50 July 06, 2011 New Fashion 3.00 July 06, 2011 Vora Associates 2.16 July 07, 2011 New Fashion 0.62 July 07, 2011 Vora Associates 0.53 Total 10.81

Page 4 of 11 8. It was observed from Bank KYC documents that the Noticees are proprietorship firms dealing in cloth trading, commission agent etc and have no experience in providing medical equipment. The Noticees are also related to each other as they are family members or relatives. These funds have not been received back by BPML.

Source: SecMarx — sebi:Order/BD/AB/2020-21/10390-10393. 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.