sebi:Order/PM/GD/2022-23/16782-16811
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Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 11(1)
- s. 12A
- s. 12
- s. 15H
- s. 15J
- s. 11C
- s. 11C(3)
- s. 11C(2)
- s. 23J
- s. 23
- s. 23E
- s. 179
- s. 3(42)
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 200
- Reg. 4(2)
- Reg. 2
- Reg. 2(c)
- Reg. 3(a)
- Reg. 2(1)
- Reg. 57
- Reg. 60(7)(a)
- Reg. 60(7)
Parties
- Midvalley Entertainment Limited
- Datuk K. Ketheeswaran
- Eduexel Infotainment Limited
- Aswin Logistic Ventures
- Omni Ax's Software Ltd.
- Bharat Babubhai Trivedi
- BMD Exports Pvt. Ltd.
- Buddhisagar Shares and Services Pvt. Ltd.
- Ghantakarna Shares and Services Pvt. Ltd.
Holding
No final adjudication finding or penalty is contained in the extracted pages; the excerpts record only SEBI's investigation findings and show-cause allegations against MVEL, its RHP/Prospectus signatories and connected trading entities.
Full text
Adjudication Order in respect in the matter of Midvalley Entertainment Ltd. Page 2 of 114 17 Aswin Logistic Ventures AAYPU1084C 18 Omni Ax’s Software Ltd. L30006TN1992PLC022439 19 Bharat Babubhai Trivedi ACDPT8077B 20 BMD Exports Pvt. Ltd. AACCB5249H 21 Budhisagar Shares & Services Pvt. Ltd. AADCB7966J 22 Ghantakarna Shares & Services Pvt. Ltd.
Adjudication Order in respect in the matter of Midvalley Entertainment Ltd. Page 3 of 114 at Rs. 58.05 per share. This meant that the scrip of MVEL witnessed a fall of 17% on listing day from its IPO allotment price. Subsequently, during a period of one month i.e. from January 28, 2011 to February 28, 2011, the price of the scrip saw a further fall to Rs. 50.50/- per share (as on February 10, 2011) then witnessed a sudden increase, whereby the price of the scrip of MVEL touched a level of Rs. 99.15/- per share (as on February 25, 2011). Finally, the scrip of MVEL closed at Rs. 89.15/- at the end of the abovementioned period i.e., on February 28, 2011. Therefore, an investigation was conducted by Securities and Exchange Board of India (hereinafter referred to as SEBI) in the matter of IPO of MVEL for the period of January 27, 2011 to February 28, 2011 (hereinafter referred to as investigation period) to investigate whether and if any violation of the provisions of Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as the SCRA), Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the SEBI Act, 1992), Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as PFUTP Regulations) was done with regard to the bidding in the IPO of MVEL, fund flow from IPO proceeds, utilization of IPO proceeds, disclosures made by MVEL in the IPO pr
Adjudication Order in respect in the matter of Midvalley Entertainment Ltd. Page 4 of 114 further changed to Midvalley Entertainment Limited vide a fresh certificate of incorporation dated December 27, 2005 and its shares were acquired by Unigold Pacific Ltd., Kiara Enigma SDNBHD and Global Motion Pictures & Ventures Pte. Ltd. during 2005-06. In 2007, management of the company was taken over by Datuk K. Ketheeswaran (hereinafter referred to as Noticee 2/MD). The list of Promoters of MVEL at the time of IPO consist of and include Noticee 2, Unigold Pacific Ltd., Kiara Enigma Sdn Bhd. and Global Motion Pictures & Ventures Pte. Ltd. As per the information available in the Prospectus filed during the IPO, MVEL had previously filed Draft Red Herring Prospectus (DRHP) with SEBI on four different occasions for its IPO in 2000, 2002, 2007 and 2008. As per the said information, MVEL did not proceed with the IPO in the years 2000, 2002 and 2008 citing market conditions and, subsequently, it had to withdraw the DRHP filed with SEBI in 2007 due to inconsistency in the its financials given in the DRHP and eligibility criteria. Accordingly SEBI initiated Adjudication Proceedings against the entities for the violation of the provisions of SEBI Act, PFUTP Regulations, 2003.
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Source: SecMarx — sebi:Order/PM/GD/2022-23/16782-16811. 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.