sebi:Order/GR/KG/2022-23/17219

SEBI · SEBI · 2021-06-01 · G. Ramar, Adjudicating Officer

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Facts / Headnote

Proceedings disposed of without any directions, without going into the merits of the case - not continued

Provisions invoked

• s. 15A
• s. 15
• s. 15H
• s. 15I
• s. 14
• s. 14(1)
• s. 143(12)
• s. 227
• s. 239
• s. 45

Regulations

• Reg. 201
• Reg. 30
• Reg. 52(7)
• Reg. 56
• Reg. 15
• Reg. 56(1)
• Reg. 56(1)(a)
• Reg. 56(1)(c)
• Reg. 56(1)(b)
• Reg. 56(2)
• Reg. 56(1)(c)(i)
• Reg. 15(1)(t)
• Reg. 15(1)(c)
• Reg. 52(3)
• Reg. 52(3)(a)
• Reg. 56(1)(d)

Parties

• Reliance Capital Limited

Holding

The adjudication proceedings against Reliance Capital Limited cannot be continued and are accordingly disposed of without any directions. The order expressly does not go into the merits of the case.

Full text

_____________________________________________________________________________________________ Adjudication order in respect of Reliance Capital Limited Page 2 of 30 referred to as ‘SEBI Act, 1992’) read with Section 15-I of SEBI Act, 1992 read with Rule 3 of SEBI (Procedure for Holding Inquiry and imposing penalties) Rules, 1995 (hereinafter referred to as ‘Rules’), to inquire and adjudge under Section 15A(b) of the SEBI Act, 1992 the alleged violations of Regulation 56(1)(c)(ii) of the LODR Regulations, 2015 and Regulation 56(2) of LODR Regulations, 2015 read with Regulation 15 (1) (c) of the SEBI (Debenture Trustee) Regulations, 1993 (hereinafter referred to as ‘DT Regulations, 1993). However, pursuant to his transfer, the undersigned was appointed as the Adjudicating Officer vide order dated June 01, 2021, in the matter.

_____________________________________________________________________________________________ Adjudication order in respect of Reliance Capital Limited Page 3 of 30 subsequently, had examined the matter and also appointed legal experts, who independently carried out an in-depth examination of the matters and issues raised therein and concluded that there was no matter attracting the provisions of Section 143(12) of the Companies Act, 2013. It was stated that the matter is under consideration with the Ministry of Corporate Affairs.

_____________________________________________________________________________________________ Adjudication order in respect of Reliance Capital Limited Page 4 of 30 to the above. Subsequently, DT vide its letter dated July 04, 2019 had sought clarification / information from RCL about, inter alia, the audited/unaudited financials of FY ended March 2019, etc. RCL responded to DT’s aforesaid letter vide its letter dated July 22, 2019, inter alia informing it that since the Board meeting had not been held, the company did not have the audited financials as on March 31, 2019 and all relevant information i.e. security cover certificate, value of book debts would be provided post holding of Board meeting. It was observed that RCL did not provide the specific information sought by the DT thus hampering its ability to act in the interest of the investors.

Source: SecMarx — sebi:Order/GR/KG/2022-23/17219. 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.