sebi:Order/BD/NR/2020-21/7648-7649
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Facts / Headnote
The Adjudicating Officer found that the Noticees had wrongly certified the utilisation of IPO proceeds and violated the cited SEBI Act and PFUTP provisions. The supplied text does not disclose the operative monetary-penalty determination or amount.
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 15H
- s. 15I
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 4
- Reg. 2(1)
Parties
- M. V. Damania & Co. (currently known as DNV & Co.), Noticee 1
- Bharat Jain, partner who signed the certificate, Noticee 2
Holding
The Adjudicating Officer found that the Statutory Auditor had wrongly certified that IPO proceeds were utilised for the objects stated in the prospectus, and held that the Noticees violated the cited SEBI Act and PFUTP provisions. The supplied text does not include the operative determination of any monetary penalty.
Full text
Adjudication Order in the matter of Paramount Printpackaging Ltd., Page 2 of 48 2011 to April 25, 2011 and its shares got listed on May 09, 2011. The issue price was ₹35/- per equity share aggregating to ₹4,582.96 Lakhs. The IPO of PPL was graded by ICRA, Credit Rating Agency and assigned IPO Grade 2 indicating 'Below Average Fundamentals'.
Adjudication Order in the matter of Paramount Printpackaging Ltd., Page 3 of 48 Statutory Auditor in the audit report dated May 30, 2012 had wrongly stated that the company has utilised the IPO proceeds as per the objects of the issue. The object wise breakup of the same is as under:
Adjudication Order in the matter of Paramount Printpackaging Ltd., Page 4 of 48 decision of the investors. It is also observed that the certificated dated May 30, 2012, was signed by Bharat Jain (ICAI Membership No. 100583) (hereinafter referred to as “Noticee 2”) for M.V.Damania & Co (currently known as DNV & Co.,) under the seal of the firm as its Partner. Therefore, it is alleged that the Statutory Auditor, M. V. Damania & Co. (Firm Registration Number 102079W) (currently known as DNV & Co.,) {Noticee 1} and its partner Bharat Jain {Noticee 2} who had signed the certificate had violated the provisions of Section 12 A(a), (b) and (c) of SEBI Act and Regulations 3 (a), (b), (c), (d), 4(1), 4(2) (f), (k) and (r) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 {hereinafter referred to as SEBI (PFUTP)” Regulations}.
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Source: SecMarx — sebi:Order/BD/NR/2020-21/7648-7649. 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.