sebi:Order/GR/BM/2022-23/23317
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Facts / Headnote
Noticee held liable for violation and penalty of Rs.10,00,000 imposed under Section 15HA of the SEBI Act, 1992
Provisions invoked
- s. 15
- s. 11B
- s. 12A
- s. 15H
- s. 27
- s. 15J
- s. 28A
- s. 23E
- s. 376
Regulations
- Reg. 3
- Reg. 200
- Reg. 2(c)
- Reg. 3(a)
- Reg. 62
Parties
- Mr. P.V.R. Murthy
Holding
The Noticee, director of Birla Cotsyn (India) Ltd., violated Section 12A(a), (b), (c) of the SEBI Act, 1992 read with Regulations 3(a), (b), (c), (d) and 4(1) of the PFUTP Regulations, 2003 by aiding the fraudulent self-financing of the company's GDR issue, and is liable to a monetary penalty of Rs.10,00,000 under Section 15HA of the SEBI Act, 1992.
Full text
Adjudication Order in respect of Mr. P.V.R. Murthy in the matter of GDR Issue by Birla Cotsyn (India) Ltd. Page 2 of 37 March 15, 2010, equivalent to its 96,89,00,000 equity shares of Re.1 each, and the said issue was subscribed by only one entity viz. Vintage FZE (now known as Alta Vista International FZE) (hereinafter referred to as ‘Vintage’). It was observed that the subscription amount was paid by Vintage by obtaining a loan from European American Investment Bank AG (hereinafter referred to as ‘EURAM Bank’) by entering into Loan Agreement dated February 23, 2010 with EURAM Bank.
Adjudication Order in respect of Mr. P.V.R. Murthy in the matter of GDR Issue by Birla Cotsyn (India) Ltd. Page 3 of 37 4. As the said execution of Pledge agreement by the Noticee on behalf of BCIL and he was also present in the aforesaid board meeting where the decision to come up with GDR issue by BCIL was taken and in furtherance to the same board resolution was also passed, it was alleged that the Noticee had acted as party to the fraudulent scheme.
Adjudication Order in respect of Mr. P.V.R. Murthy in the matter of GDR Issue by Birla Cotsyn (India) Ltd. Page 4 of 37 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
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Source: SecMarx — sebi:Order/GR/BM/2022-23/23317. 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.