sebi:Order/SM/YK/2022-23/25037-25043
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticees held liable for violations of LODR Regulations, SCRA and SEBI Act and liable for monetary penalty under section 15HB of SEBI Act.
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 15H
- s. 27
- s. 15J
- s. 21
- s. 133
- s. 73(2)
- s. 134
- s. 129
- s. 68
- s. 188
- s. 217
- s. 215
- s. 628
Regulations
- Reg. 23
- Reg. 103
- Reg. 18(3)
- Reg. 33
- Reg. 6
- Reg. 23(2)
- Reg. 23(4)
- Reg. 4(2)(f)(i)
- Reg. 33(2)(a)
- Reg. 6(2)
- Reg. 23(1)
- Reg. 6(2)(a)
- Reg. 5
- Reg. 16(1)(b)
- Reg. 27
Parties
- Noticee No. 1
- Noticee No. 2
- Noticee No. 3 - Nemichandra Jain
- Noticee No. 4
- Noticee No. 5
- Noticee No. 6 - Company Secretary and Compliance Officer of Fedders
- Noticee No. 7
Holding
Noticee No. 1 and Noticee No. 3 violated Regulations 4(2)(f)(i)(2), 4(2)(f)(ii)(2),(6),(7), 4(2)(f)(iii)(7), 18(3) read with Para A of Part C of Schedule II, and 33(2)(a) read with 17(8) of LODR Regulations and Section 21 of SCRA read with Section 27 of SEBI Act, Noticee No. 2 violated Regulation 33(2)(a) read with 17(8) and Section 21 of SCRA, and all Noticees are liable for monetary penalty under section 15HB of SEBI Act.
Full text
Adjudication Order in the matter of Fedders Electric & Engineering Ltd. Page 2 of 111 “TAR”) dated February 25, 2020, for the period 14 August 2014 to 14 August 2020 submitted by Grant Thornton India LLP to the Resolution Professional (RP) which was sent to SEBI. The focus of the said investigation was to ascertain if there were any violations of the provisions of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”), Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCRA”), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as “LODR Regulations”) and erstwhile Listing Agreement.
Adjudication Order in the matter of Fedders Electric & Engineering Ltd. Page 3 of 111 4. During to the course of investigation by SEBI, the following was observed and accordingly alleged in the aforementioned Show Cause Notice:
Adjudication Order in the matter of Fedders Electric & Engineering Ltd. Page 4 of 111 4.1.2 Some of the sales were by way of two-way dealings viz both sales and purchases were made with the same party or with the parties having common partners/directors. Also. Fedders had significantly increased two-way dealings from 5.71% of total sales and 26.91% of total purchases in FY 2012-13 to 48.95% of total sales and 43.5% of total purchases in FY 2017-18. Also, parties involved in two-way dealings with Fedders, having sales and purchases greater than Rs. 1 crore are either Related Parties or potentially interlinked parties (hereinafter referred to as “PILE”) or potentially non-existing third parties mentioned in Table 5 below: Table 3: Two-way dealings - Sales
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:Order/SM/YK/2022-23/25037-25043. 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.