sebi:Order/SR/SM/2020-21/8433/47
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violations established; penalty of Rs. 12,00,000 imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 28A
- s. 23
- s. 31(1)
Regulations
- Reg. 3
- Reg. 5
- Reg. 2
- Reg. 51(1)
- Reg. 51(2)
- Reg. 58
- Reg. 55
- Reg. 57
- Reg. 53
- Reg. 4
- Reg. 54
- Reg. 52(4)
- Reg. 51
- Reg. 50(2)
- Reg. 52(5)
- Reg. 52(7)
- Reg. 56
- Reg. 59
- Reg. 60
- Reg. 54(2)
Parties
- Alok Industries Limited
Holding
The Adjudicating Officer held Alok Industries Limited violated regulations 51(1), 51(2) r/w Part B of Schedule III (Clauses A1, A4, A9), 52(4), 52(5) and 54(2) of LODR Regulations, 2015 and imposed a penalty of Rs. 12,00,000 under section 15A(b) of the SEBI Act, 1992.
Full text
Adjudication order in respect of Alok Industries Limited Page 2 of 19 Rules, 1995 (hereinafter referred to as Adjudication Rules, 1995) to inquire into and adjudge under section of 15A(b) of the SEBI Act, 1992, the alleged violations of provisions of regulations 51(1), 51(2) r/w Part B of schedule III (Clause A1, A4, A9), 52(4), 52(5) and 54(2) of LODR Regulations, 2015. The said matter was transferred and undersigned was appointed AO, which was conveyed vide communique dated December 26, 2019.
Adjudication order in respect of Alok Industries Limited Page 3 of 19 b. With respect to above, SEBI vide emails dated July 18, 2017, July 20, 2017, July 25, 2017, July 26, 2017, August 22, 2017, August 28, 2017, September 29, 2017, January 16, 2018, January 31, 2018, February 22, 2019, advised BSE to provide details as to whether the Noticee has complied with the LODR Regulations and specific period of non-compliances, if any. BSE vide emails dated July 18, 2017, July 19, 2017, July 25, 2017, July 27, 2017, September 01, 2017, October 04, 2017, January 29, 2018, February 07, 2018, February 26, 2019 replied in this regard. The Correspondence between SEBI and BSE is provided to the Noticee as Annexure-I. c. On the basis of details received from BSE, SEBI vide email dated November 02, 2018 sought clarification from the Noticee with respect to various non- compliances with LODR Regulations, as indicated by BSE. The Noticee vide email dated November 16, 2018, provided its reply. The Correspondence between SEBI and the Noticee is is provided to the Noticee as Annexure-II. d. From the above, it was observed that the Noticee had not made disclosures as required under LODR Regulations in regard to aforesaid series of NCDs issued and listed by Noticee. Based on the observations, following are alleged: e. The Noticee has failed to promptly inform BSE of the default in payment of interest/principal in respect of various series of NCDs referred to at para 3. Thus, the Noticee has alleged
Adjudication order in respect of Alok Industries Limited Page 4 of 19 i. The Noticee has failed to disclose to BSE in its quarterly financial statements for the period ending March 31, 2016, June 30, 2016, September 30, 2016, December 31, 2016, March 31, 2017, June 30 2017, September 30, 2017, December 31, 2017, March 31, 2018, and June 30 2018, the extent and nature of security created and maintained with respect to its listed NCDs. Thus, the Noticee has alleged to have violated Regulation 54(2) of the LODR Regulations.
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/SR/SM/2020-21/8433/47. 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.