sebi:Order/MC/HP/2021-2022/12376-12378
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Facts / Headnote
Allegations against Noticee 1 (DDP) held not established; Noticee 2 and Noticee 3 (FPIs constituting India Max Group) held liable for breach of 10% clubbed investment limit and related violations and penalized Rs.10,00,000 jointly and severally under Section 15HB of SEBI Act.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 23
- Reg. 24
- Reg. 201
- Reg. 23(1)(a)
- Reg. 23(3)
- Reg. 7(4)
- Reg. 21(7)
- Reg. 45(2)
- Reg. 22(1)(a)
- Reg. 32(2)(a)
Parties
- ICICI Bank Ltd (Designated Depository Participant) - Noticee 1
- India Max Investment Fund Limited - Noticee 2
- Grosvenor Investment Fund Ltd (Grovsnor) - Noticee 3
Holding
Noticee 1 (DDP) did not violate FPI grouping/reporting obligations, while Noticee 2 and Noticee 3, having common control since August 02, 2010 and breaching the 10% clubbed limit in STI India Limited since August 16, 2017, violated Regulations 23(1)(a), 23(1)(b), 23(1)(g), 23(3) and Clauses (1), (2), (5) and (6) of Third Schedule read with Regulation 24 of FPI Regulations, 2014 and were penalized Rs.10,00,000 jointly and severally under Section 15HB.
Full text
Adjudication Order in the matter of India Max Group Page 2 of 58 2. Adjudication proceedings have been initiated against,
Adjudication Order in the matter of India Max Group Page 3 of 58 SHOW CAUSE NOTICE, REPLY AND HEARING 4. Show Cause Notice No. EAD5/MC/DPS/22897/2020 dated December 28, 2020 (hereinafter be referred to as, the “SCN”) was served upon the Noticees under Rule 4(1) of the Adjudication Rules to show cause as to why an inquiry should not be held and penalty not be imposed against Noticees under Section 15HB of SEBI Act for the aforesaid alleged violations.
Adjudication Order in the matter of India Max Group Page 4 of 58 7. NSDL vide its e-mail dated July 31, 2019 informed SEBI that the Noticee 1 on July 29, 2019 had asked to group the Noticee 2 and 3 (FPIs) under the new investor group - India Max Group and subsequently, it was observed that the total investment by the FPIs mentioned above was in breach of the investment limit of 10% in the scrip of STI India Limited [ISIN: INE090C01019] as on July 29, 2019.
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Source: SecMarx — sebi:Order/MC/HP/2021-2022/12376-12378. 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.