sebi:Order/SM/VC/2018-19/1792
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Facts / Headnote
Penalty imposed on the Noticee for failure to comply with summons
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15J
- s. 12
- s. 11C
Regulations
- Reg. 7(3)
Parties
- Fact Enterprise Limited
Holding
The Noticee, Fact Enterprise Limited, violated sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with the summons dated July 02, 2014 and December 04, 2014, and a penalty of Rs 1,00,000 was imposed under section 15A(a) of the SEBI Act. However, no penalty was levied for furnishing false information, as per the Supreme Court's decision in Bonanza Biotech Ltd vs SEBI.
Full text
Page 2 of 26 proceeds of RKDL was siphoned off by RKDL in connivance with 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 course of investigation that CIL, which has been referred in the aforementioned news article is a group/associate company of CSL.
Page 3 of 26 4. It is further observed that, after the IPO proceeds to the tune of Rs 72.35 crores was credited into the escrow account of RKDL on December 23 & 24, 2010, the Noticee indulged in the following transactions:- i. The Noticee had received a sum of Rs. 2,01,33,000/- from the account of RKDL on December 24, 2010. On the same day, Noticee also received a sum of Rs. 50 lakh from the account of Ranisati Dealer Pvt Ltd ( Ranisati). ii. On the same day i.e. December 24, 2010, Noticee transferred an amount of Rs. 1,24,75,000/- to the account of BLC which itself transferred an amount of Rs. 1.21 crore to the account of Syncom Formulations (India) Ltd. (Syncom), which had used the said amount to purchase the shares of RKDL on the day of listing i.e. December 27, 2010. iii. The Noticee also transferred an amount of Rs. 1.25 crore to the account of Mr. Rajkumar Kedia on December 24, 2010. iv. Further, the following transactions had taken place between the Noticee and Suvidha: Transfer of Rs 1.44 crore from Suvidha to Fact on Feb 25, 2011. Transfer of Rs 75 lakh from Fact to Suvidha on Jan 10, 2011. Transfer of Rs 15 lakh from Suvidha to Fact on Jan 07, 2011.
Page 4 of 26 Transactions of the Noticee as mentioned in para 3 above Transactions of the Noticee as mentioned at para 4 above
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Source: SecMarx — sebi:Order/SM/VC/2018-19/1792. 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.