sebi:Order/GR/KG/2021-22/12899
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Disposed of — adjudication proceedings against Sterling Biotech Limited cannot be proceeded with
Provisions invoked
- s. 15A
- s. 12
- s. 15H
- s. 11C(2)
- s. 21
- s. 23E
- s. 279
- s. 446
- s. 391
- s. 33
Regulations
- Reg. 3
- Reg. 3(a)
- Reg. 32(b)
Parties
- Sterling Biotech Limited
- Mr. Nitin Sandesara
- Mr. Chetan Sandesara
- Mr. Rajbhusan Dixit
- Mr. Narendra Patel
- Mr. Vilas Joshi
- Mr. P B Mehta
Holding
The adjudication proceedings initiated against Sterling Biotech Limited vide SCN dated June 29, 2018, cannot be proceeded with because the company is under liquidation and no leave of the NCLT has been obtained to continue the proceedings.
Full text
Adjudication Order in respect of Sterling Biotech Limited in the matter of its GDR issues Page 2 of 12 GDR issue date No. of GDRs Issued Capital raised (US$mn. ) Price per GDR (US$) Underlyi ng shares per GDR Local custodian No. of equity shares underlying GDRs Global Depositor y Bank Lead Manager Bank where GDR proceeds deposited GDRs listed on 01- Oct- 2003 23,28,0 45 15.37 6.6 6 ICICI Bank Ltd., Mumbai
Adjudication Order in respect of Sterling Biotech Limited in the matter of its GDR issues Page 3 of 12 genuinely subscribed. Therefore, the entire scheme involving entering into Pledge Agreement, making corporate announcement that the GDRs were successfully subscribed without disclosing the arrangement to the investors resulted in publication of misleading news to the stock exchanges which contained information in distorted manner and which might have influenced the decision of the investors. Such announcements misled Indian retail investors and induced investors to deal in shares of Sterling. Thereby, the scheme of issuance of GDRs was fraudulent. Hence, Sterling had violated the provisions of regulations 3 (a), (b), (c), (d) and 4(1), 4(2) (f), (k) and (r) of SEBI (PFUTP) Regulations, 2003 along with its Directors.
Adjudication Order in respect of Sterling Biotech Limited in the matter of its GDR issues Page 4 of 12 v. Mr. Nitin Sandesara (Chairman of Sterling) failed to furnish information sought through summons and thus hampered the investigations and thus violated Section 11C(2) SEBI Act, 1992.
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Source: SecMarx — sebi:Order/GR/KG/2021-22/12899. 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.