sebi:Order/GR/BM/2022-23/24239/1-10
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Facts / Headnote
Penalty imposed on Noticee No.1-7 and Noticee No.10 under Section 15HB of SEBI Act for violations of ICDR Regulations, 2009; Noticee No.8 and 9 (promoters) held not liable.
Provisions invoked
- s. 15
- s. 62
- s. 15H
- s. 15J
- s. 11C
- s. 28A
- s. 67(3)
- s. 67
- s. 167
- s. 13
- s. 102
- s. 27
- s. 73(1)
- s. 2(60)
- s. 42
- s. 2(69)
- s. 35
- s. 168
- s. 257
- s. 284
Regulations
- Reg. 58
- Reg. 57
- Reg. 200
- Reg. 64
- Reg. 51A
- Reg. 57a
Parties
- GCM Securities Ltd.
- Inder Chand Baid
- Manish Baid
- Samir Baid
- Alok Kumar Das
- Amitabh Shukla
- Ashok Bothra
- Inventure Merchant Banker Services Pvt. Ltd.
Holding
Noticee No.1 (GCM Securities Ltd.) and Noticee No.2-7 (directors) violated Regulations 57 and 58 of ICDR Regulations, 2009 by failing to disclose 7 preferential allotments deemed to be a public issue in the subsequent SME prospectus, and Noticee No.10 (lead merchant banker) violated Regulation 64 for failure of due diligence; penalties were imposed on Noticee No.1-7 and 10 while Noticee No.8-9 (promoters) were exonerated.
Full text
Adjudication order against 10 entities in the matter of Inspection of GCM Securities Ltd. P a g e 2 | 21 and 246 non-promoters. As the said allotments were made to more than 49 persons, SEBI during the examination had observed certain irregularities which are in violations of various provisions of ICDR Regulations, 2009 by the Noticees. The details are as under; (a) Regulations 57 and 58 read with Schedule VIII of ICDR Regulations, 2009 by Noticee No. 1 to 9; (a) Regulation 64 of ICDR Regulations 2009 by Noticee No. 10.
Adjudication order against 10 entities in the matter of Inspection of GCM Securities Ltd. P a g e 3 | 21 the personal hearing scheduled on the said date. During the said hearing the AR had requested for two weeks’ time to file the reply in the matter.
Adjudication order against 10 entities in the matter of Inspection of GCM Securities Ltd. P a g e 4 | 21 offer and allotment to establish that the issues in February 2013 were private in addition to stating that assuming that the violation of Section 67(3) of the Companies Act, 1956 stands against it, however, no prejudice has been caused to any investors as on date.
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Source: SecMarx — sebi:Order/GR/BM/2022-23/24239/1-10. 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.