sebi:Order/BS/KH/2025-26/31506
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Facts / Headnote
Violations found under Regulation 33(1)(d) and Regulation 34(3) read with Para E of Schedule V of LODR Regulations; no monetary penalty imposed; allegations under Regulation 33(1)(b) read with Regulation 48 and Regulation 4(1)(b), Regulation 15(2)(a) read with Regulation 4(1)(e) and 4(1)(g), and Regulation 18(2)(b) addressed with findings.
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 11A(2)
- s. 133
Regulations
- Reg. 46
- Reg. 18
- Reg. 15(2)(a)
- Reg. 48
- Reg. 23(9)
- Reg. 17
- Reg. 34(3)
- Reg. 15
- Reg. 4(1)(e)
- Reg. 33(1)
- Reg. 27(2)
- Reg. 4(1)(b)
- Reg. 4(1)(g)
- Reg. 33(1)(b)
- Reg. 33(1)(d)
- Reg. 18(2)(b)
- Reg. 98
Parties
- Fredun Pharmaceuticals Limited
Holding
The Noticee was found to have violated Regulation 33(1)(d) of LODR Regulations by not ensuring limited review/audit reports were given by a peer review auditor, and Regulation 34(3) read with Para E of Schedule V of LODR Regulations for failure to annex compliance certificate with directors' report for FY ended March 2022. No monetary penalty was imposed considering the factors under Section 15J of the SEBI Act.
Full text
Adjudication Order in the matter of Fredun Pharmaceuticals Limited Page 2 of 22 2019-20 to FY 2021-22, while CG provisions were applicable during the said period.
Adjudication Order in the matter of Fredun Pharmaceuticals Limited Page 3 of 22 SHOW CAUSE NOTICE, REPLY AND HEARING 4. A Show Cause Notice no. SEBI/EAD-1/BS/14771/1/2024 dated April 19, 2024 (hereinafter referred to as “SCN”) was issued by the undersigned to the Noticee via Speed Post Acknowledgement Due (SPAD) and e-mail under the provisions of Rule 4(1) of the Adjudication Rules and section 15-I of the Securities and Exchange Board of India Act 1992(SEBI Act 1992), calling upon the Noticee to show cause as to why an inquiry should not be held against it for the aforesaid alleged violations of provisions of LODR Regulations by it, and why penalty, if any, should not be imposed on it under Section 15 HB and Section 15A(b) of SEBI Act, 1992.
Adjudication Order in the matter of Fredun Pharmaceuticals Limited Page 4 of 22 Institute of Chartered Accountants of India (hereinafter referred to as “ICAI”), it was found that Noticee has failed to ensure that the limited review of audit reports submitted to the stock exchange were given by peer reviewed auditors. Therefore, it is alleged that the Noticee has violated Regulation 33(1)(d) of LODR Regulations.
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