sebi:Order/MC/DS/2019-20/7326
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Facts / Headnote
Penalty imposed on the Noticee for violations of SEBI (ICDR) Regulations, 2009 and SEBI DIP Guidelines
Provisions invoked
- s. 81
- s. 15H
- s. 22
- s. 15I
- s. 73
- s. 15J
- s. 25
- s. 4A
- s. 67(3)
- s. 67
- s. 56
- s. 58
- s. 73(1)
- s. 64
- s. 56(1)
- s. 60
- s. 56(3)
- s. 64(2)
- s. 441
- s. 64(1)
Regulations
- Reg. 47
- Reg. 7
- Reg. 4(2)
- Reg. 57
- Reg. 26
- Reg. 6
- Reg. 32
- Reg. 5
- Reg. 49
- Reg. 4(2)(d)
- Reg. 4
- Reg. 36
- Reg. 46
- Reg. 63
Parties
- M/s Vishwaraj Sugar Industries Limited
Holding
The Noticee was found to have violated SEBI (ICDR) Regulations, 2009 and SEBI DIP Guidelines by failing to file a prospectus and apply for listing in respect of (i) allotments made from October 1, 2007 to March 21, 2008 and (ii) the allotment to VSL Shareholders Welfare Trust on December 10, 2010 and subsequent offer for sale to 9,671 persons. A penalty of ₹7,00,000 was imposed under Section 15HB of the SEBI Act.
Full text
Adjudication Order in the matter of M/s Vishwaraj Sugar Industries Limited Page 2 of 34 Noticee. The appointment of the AO was communicated vide order dated May 27, 2019.
Adjudication Order in the matter of M/s Vishwaraj Sugar Industries Limited Page 3 of 34 c) It was stated in DRHP that these aggregate allotments and transferred shares may not have been in compliance with the provisions governing public offering of securities under the Companies Act, 1956, including those mandating the issuance and registration of a Prospectus.
Adjudication Order in the matter of M/s Vishwaraj Sugar Industries Limited Page 4 of 34 Date of Allotment of Equity Shares Number of Allotees No. of Equity Shares Face Value (₹) Issue Price (₹) Nature of Consideration Amount mobilized (₹) February 28, 2008 49 94 1000 6000 Cash 5,64,000.00 February 29, 2008 42 75 1000 6000 Cash 4,50,000.00 March 03, 2008 37 91 1000 6000 Cash 5,46,000.00 March 08, 2008 49 97 1000 6000 Cash 5,82,000.00 March 11, 2008 49 91 1000 6000 Cash 5,46,000.00 March 12, 2008 49 97 1000 6000 Cash 5,82,000.00 March 14, 2008 49 98 1000 6000 Cash 5,88,000.00 March 18, 2008 49 106 1000 6000 Cash 6,36,000.00 March 25, 2008 49 81 1000 6000 Cash 4,86,000.00 March 31, 2008 1 500 1000 6000 Cash 30,00,000.00 Total 1978 9564 1000 6000
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Source: SecMarx — sebi:Order/MC/DS/2019-20/7326. 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.