sebi:Order/SBM/JR/2021-22/11852

SEBI · SEBI · 2017-11-21 · Suresh B Menon, Adjudicating Officer

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Facts / Headnote

Adjudication proceedings disposed without penalty - violation not established

Provisions invoked

• s. 15
• s. 12A
• s. 15H
• s. 12
• s. 15I
• s. 17
• s. 30A
• s. 15(2)

Regulations

• Reg. 4
• Reg. 2(c)
• Reg. 3
• Reg. 13
• Reg. 199
• Reg. 200
• Reg. 2
• Reg. 3(a)

Parties

• Mr Deepak Gupta

Holding

The Adjudicating Officer held that the alleged violation of Section 12A(a), (b), (c) read with Regulations 3 and 6(a) of the PFUTP Regulations, 1995 was not established against the Noticee and disposed of the adjudication proceedings initiated vide SCNs dated June 26, 2018 and December 31, 2019 without imposing any penalty.

Full text

In the matter of GDR issue of Morepen Laboratories Limited Page 2 of 15 that the Noticee was a director on the Board of the company during the relevant investigation period.

In the matter of GDR issue of Morepen Laboratories Limited Page 3 of 15 and 4(1) of the PFUTP Regulations, 2003. However, during the course of the proceedings, it emerged that the alleged wrongful issuance of the GDRs by the Company took place in March 2003 and consequent violation of the various provisions law by the persons/entities, including the Noticee i.e the alleged violation of the provisions of regulations 3(a), (b), (c), (d) and 4(1) of PFUTP Regulations, 2003 levelled against the Noticee in the SCN dated June 26, 2018 cannot be invoked on the Noticee as the PFUTP Regulations, 2003 came into effect on July 17, 2003. In view of the same and after the approval of the competent authority, a supplementary SCN dated December 31, 2019 was issued to the persons/entities, including the Noticee. As mentioned in the preceding paragraphs, in the supplementary SCN dated December 31, 2019 which was issued to the Noticee, it was alleged that Noticee has violated the provisions of sections 12A(a), ( b) ( c ) of SEBI Act r/w Regulations 3 & 6 (a) of the PFUTP Regulations, 1995 r/w Regulation 13 of PFUTP Regulations, 2003 (repeal and savings).

In the matter of GDR issue of Morepen Laboratories Limited Page 4 of 15 term loan facility of US $8 million. It is further alleged that both these agreements were signed by Mr. Lindsey James Trevor Smallbone (hereinafter referred to as “Smallbone”) who was authorized by the Board of Directors of both the subscriber companies i.e. Solsec and Seviron to sign the aforementioned agreements.

Source: SecMarx — sebi:Order/SBM/JR/2021-22/11852. 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.