sebi:Order/BD/AB/2020-21/10412
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Facts / Headnote
Penalty imposed on Noticee
Provisions invoked
- s. 15A
- s. 15
- s. 12A
- s. 15H
- s. 15J
Regulations
- Reg. 3(a)
Holding
The Noticee 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 colluding with BPML and acting as conduit for transfer of IPO funds, and a monetary penalty of Rs. 5,00,000/- was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 10 APPOINTMENT OF ADJUDICATING OFFICER 3. SEBI appointed the Shri D. Sura Reddy as the Adjudicating Officer under section 15 I of SEBI Act, 1992 read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (“AO Rules”) to inquire into and adjudge the aforesaid allegations under Section 15A(b) of the SEBI Act on March 10, 2017. Subsequently, Shri Jeevan Sonaparote was appointed as the Adjudicating Officer in the matter after which the undersigned was appointed as the Adjudicating Officer in the matter on September 26, 2019.
Page 3 of 10 stated in the IPO prospectus. These funds have not been received back by BPML. 8. It was thus alleged that BPML had no plans to utilize money as per disclosures made in the Prospectus and thus, BPML has played fraud on IPO subscribers who had trusted BPML management with their money to be utilized as per issue objectives. BPML had deviated from issue objects and diverted money from IPO proceeds. It is alleged that funds worth Rs. 33.4 Cr was siphoned off by BPML by colluding with various entities including the Noticee.
Page 4 of 10 07/02/2012 Shiv Shakti Bakers Pvt Ltd 2,50,000 10+30 1,00,00,000 07/02/2012 Giladian Intertrade Pvt Ltd 10,000 10+140 15,00,000 07/02/2012 Calcutta Isolators & Equipment Pvt Ltd 10,000 10+90 10,00,000 Total Value of shares purchased for BPML 3,25,00,000
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Source: SecMarx — sebi:Order/BD/AB/2020-21/10412. 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.