sebi:Order/GR/HK/2023-24/28645-28656

SEBI · SEBI · G Ramar, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalties imposed on the Noticees for violations of SEBI Act, SCRA, SEBI LODR Regulations and SEBI PFUTP Regulations

Provisions invoked

• s. 11
• s. 15A
• s. 15
• s. 12A
• s. 11(2)
• s. 15H
• s. 27
• s. 15J
• s. 11C(6)
• s. 28A
• s. 149(6)
• s. 23A
• s. 23J
• s. 23
• s. 2(54)
• s. 16
• s. 149
• s. 134
• s. 177
• s. 2(76)

Regulations

• Reg. 3
• Reg. 2(1)(c)
• Reg. 4(1)
• Reg. 17
• Reg. 4(2)
• Reg. 2(c)
• Reg. 3(b)
• Reg. 201
• Reg. 23
• Reg. 46
• Reg. 52
• Reg. 4(2)(f)
• Reg. 18
• Reg. 4(1)(a)
• Reg. 6
• Reg. 6(1)
• Reg. 48
• Reg. 33(2)(a)
• Reg. 6(2)
• Reg. 32(1)

Holding

The Noticees, including Concord Drugs Limited, its directors, CFO, independent directors, and compliance officers, were held liable for monetary penalties under Sections 15A(a), 15HA, 15HB of the SEBI Act and Sections 23A(a) and 23H of SCRA for misrepresentation of financial statements, non-disclosure of related party transactions, appointment of ineligible independent directors, failure to file limited review reports, and other regulatory violations.

Full text

Adjudication order in the matter of Concord Drugs Limited Page 2 of 100 BACKGROUND 1. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) was in receipt of a complaint alleging financial irregularities against Concord Drugs Limited (hereinafter referred to as ‘the company’ or ‘Concord’ or ‘CDL’). In order to look into the possible violation of the provisions of the Securities and Exchange Board of India Act, 1992 (“the Act”) and various Rules and Regulations made there under if any, SEBI decided to conduct the investigation on the same.

Adjudication order in the matter of Concord Drugs Limited Page 3 of 100 4. Thereafter, BSE vide letter dated 28 September 2021 had forwarded the forensic audit report and the case was analysed and converted into a detailed investigation by SEBI on 29 April 2022. The period of the said investigation was from FY 2015-16 to FY 2019-20 (hereinafter referred to as ‘investigation period / IP’).

Adjudication order in the matter of Concord Drugs Limited Page 4 of 100 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 7. A common Show Cause Notice dated March 21, 2023 (hereinafter referred to as ‘SCN’) was issued separately with different reference number to the Noticees in terms of Section 15-I of the SEBI Act, 1992 read with Rule 4 of the SEBI Adjudication Rules and Rule 4 of SCR Adjudication Rules to show cause as to why an inquiry should not be held against them and why penalty, if any, under Section 15A(a), 15HA, 15HB of the SEBI Act, Section 23A(a) and 23H of SCRA, as applicable, be not imposed upon the Noticees.

Source: SecMarx — sebi:Order/GR/HK/2023-24/28645-28656. 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.