sebi:Order/SM/AD/2022-23/21894

SEBI · SEBI · 2020-12-04 · Soma Majumder, Adjudicating Officer

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Facts / Headnote

Violation established; penalty of Rs 5,00,000 imposed under Section 15HA to be filed as claim with Liquidator

Provisions invoked

• s. 15
• s. 12A
• s. 15H
• s. 15J
• s. 15F
• s. 133
• s. 14

Regulations

• Reg. 3
• Reg. 2(1)(c)
• Reg. 4(1)
• Reg. 4(2)
• Reg. 4(2)(f)
• Reg. 200
• Reg. 3(b)

Parties

• Cox and Kings Financial Service Limited

Holding

Noticee violated Section 12A(a),(b),(c) of the SEBI Act read with Regulation 3(b),(c),(d) and Regulation 4(1) and 4(2)(f) of the PFUTP Regulations, and a monetary penalty of Rs 5,00,000 under Section 15HA was imposed to be lodged as a claim with the Liquidator.

Full text

Adjudication Order in the matter of Cox and Kings Financial Service Limited Page 2 of 16 2018. Therefore, SEBI initiated adjudication proceedings against Noticee under the provisions of Section 15HA of SEBI Act for the alleged violations of Section 12A(a),(b),(c) of the SEBI Act read with Regulation 3 (b), (c), (d) and Regulation 4(1) and 4(2)(f) of the PFUTP Regulations by Noticee.

Adjudication Order in the matter of Cox and Kings Financial Service Limited Page 3 of 16 noted from the website of Ministry of Corporate Affairs that Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code of India had been initiated against Cox & Kings Financial Service Limited. Therefore, SCN was sent to Mr. Pradeep Kumar Sethi, Resolution Professional (RP) of Noticee on February 21, 2022 through hand delivery and vide digitally signed email dated February 21, 2022. In this regard, RP, vide his letter dated February 25, 2022, replied to the SCN stating that Noticee was under CIRP and he came into the management of Noticee after his appointment as RP was made by Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench on May 07, 2021. Further, RP stated that he was only able to access financial statements for the FY 2018-19 of Noticee from the stock exchange website and no detailed accounting practice, workings and approach followed by Noticee were made available to him and that that there was no cooperation from the KMPs /erstwhile directors/promoters towards providing him with documents/information pertaining to affairs of Cox & Kings Financial Service Limited for the period prior to initiation of CIRP. RP also submitted that Hon’ble NCLT Order dated May 07, 2021 had declared a moratorium under Section 14 of Insolvency and Bankruptcy Code of India (IBC) and that there was a bar on initiation or continuation of proceedings during the moratorium

Adjudication Order in the matter of Cox and Kings Financial Service Limited Page 4 of 16 of Noticee vide the aforementioned Order of Hon’ble NCLT and requested office of Adjudicating Officer to submit claims, if any, in the matter on or before December 07, 2022.

Source: SecMarx — sebi:Order/SM/AD/2022-23/21894. 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.