sebi:Order/SM/AR/2018-19/839
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Facts / Headnote
Penalty of Rs 5,00,000 imposed on the Noticee for violation of Sections 11C(2) and 11C(3) of the SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 11
- s. 15J
- s. 11C(6)
- s. 12
- s. 11C
Parties
- M/s Everready Marketing Pvt. Ltd.
Holding
The Noticee, M/s Everready Marketing Pvt. Ltd., was held to have violated Sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with summons dated January 29, 2014 and June 04, 2014, and a penalty of Rs 5,00,000 under Section 15A(a) of the SEBI Act was imposed on it.
Full text
Page 2 of 14 the associate/connected entities of the Merchant Banker associated with the IPO of RKDL viz. Comfort Securities Limited ( hereinafter referred to as “CSL”). It was also observed during the investigation that CIL, which has been referred in the aforementioned news article was a group/associate company of CSL.
Page 3 of 14 Pvt. Ltd. on the first day of the listing of the scrip of RKDL on the stock exchanges i.e. on December 27, 2010.
Page 4 of 14 “It is further observed that S5 Trading, Everready, Bunnings, Laxminarayana and Rajanbabu are connected entities.” “Similarly, vide summons dated Jan 29, 2014 and June 04, 2014, Everready and Laxminarayana were advised to inter alia inform reasons for their above fund transactions. However, Everready and Laxminarayana have not provided the desired information/ documents, thereby hampering the investigation.” “Based on the above fund transactions, routing of funds to traders, aforesaid connection of entities, RKDL's submission regarding siphoning off (and later refunding) of IPO proceeds through S5 Trading, non- furnishing of information by S5 Trading, Everready and Laxminarayana, transfer of funds among entities mostly on the same day, the following is observed: i. Rs 2 crore was initially siphoned off and routed for purchasing shares of RKDL on the date of listing, out of IPO proceeds from RKDL through S5 Trading and then through Everready, Bunnings, Laxminarayana and Rajanbabu. Subsequently, S5 Trading refunded the same amount of Rs 2 crore to RKDL.”
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Source: SecMarx — sebi:Order/SM/AR/2018-19/839. 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.