sebi:Order/NR/2021-2022/12032

SEBI · SEBI · 2013-08-22 · Narendra Rawat, General Manager & 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

Monetary penalty of Rs. 1,00,000 imposed on the Noticee under Section 15A(b) of the SEBI Act

Provisions invoked

• s. 15A
• s. 19
• s. 3(1)
• s. 15J
• s. 15
• s. 15F
• s. 18(7)

Regulations

• Reg. 6
• Reg. 8(2)
• Reg. 8(1)

Parties

• Mr. Harish Gupta

Holding

The Noticee, a promoter of Himachal Fibres Limited, violated Regulation 8(2) of SAST Regulations, 1997 for F.Y. 2007 and F.Y. 2010 but Regulation 8(1) was not violated, and a monetary penalty of Rs. 1,00,000 was imposed only for the F.Y. 2007 delay as the F.Y. 2010 delay fell within the BIFR scheme period.

Full text

Adjudication Order in the matter of Himachal Fibres Limited Page 2 of 11 3. Subsequently, undersigned was appointed as Adjudicating officer vide order dated Dec 09, 2014.

Adjudication Order in the matter of Himachal Fibres Limited Page 3 of 11 Consideration of Issues, Evidence and Findings 7. I have carefully perused the charges levelled against the Noticee in the SCN, written

Adjudication Order in the matter of Himachal Fibres Limited Page 4 of 11 Submissions made by the Noticee: 10. The Noticee, vide his letter dated October 10, 2013 submitted inter-alia as under: (i) That the HFL was formally declared Sick Company under Section 3(1)(o) of the Sick Industrial Companies Act (“SICA”)(Case No. 219/2001) on Sep 18, 2007. (ii) That the operating Agency submitted a Draft Rehabilitation Scheme (“DRS” or “Scheme”) to the Board For Industrial and Financial Reconstruction (“BIFR”) on Nov 20, 2008. (iii) That BIFR sanctioned the Scheme on July 21, 2009. (iv) That BIFR discharged the company from the purview of SICA and protection under SICA and the Scheme was revoked on Oct 13, 2010. (v) That the Scheme sanctioned by BIFR on July 21, 2009 vide clause 13.7 provided certain reliefs and exemptions from SEBI as a measure of revival of the company which was declared sick by the BIFR. (vi) Clause 13.7 of the Scheme reads as: “(i) To exempt the company, its promoters/directors/associates from the provisions of SEBI(SAST) Regulations, 1997 for issuance of fresh share capital towards funds inducted/ to be inducted for revival during the period of rehabilitation. (ii) To consider waiver of all penalties for the non-compliances/ delays as per the regulations of the SEBI to the company and the promoters/directors”. (vii) That the BIFR had vide its order dated July 21, 2009 sanctioned this DRS with immediate effect as on that date which gave effect to the sub-clause, th

Source: SecMarx — sebi:Order/NR/2021-2022/12032. 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.