sebi:Order/SR/SM/2020-21/8855/96

SEBI · SEBI · 2019-08-26 · Sangeeta Rathod, Adjudicating Officer

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Facts / Headnote

Violations of LODR Regulations 51(1), 51(2) r/w Part B of Schedule III (Clauses A1, A4, A9), 52(4), 52(5), 54(2), 57(1) and 60(2) upheld; penalty imposed under section 15A(b) of the SEBI Act, 1992

Provisions invoked

• s. 15A
• s. 15
• s. 15J
• s. 23
• s. 14
• s. 33(5)
• s. 14(1)
• s. 31
• s. 33
• s. 14(4)
• s. 14(2)

Regulations

• Reg. 51(1)
• Reg. 51(2)
• Reg. 58
• Reg. 55
• Reg. 57
• Reg. 53
• Reg. 4
• Reg. 54
• Reg. 60(2)
• Reg. 51
• Reg. 52(4)
• Reg. 50(2)
• Reg. 56
• Reg. 59
• Reg. 60
• Reg. 54(2)
• Reg. 57(1)
• Reg. 52(5)
• Reg. 61
• Reg. 52(3)

Parties

• Amtek Auto Limited

Holding

The Adjudicating Officer held that the moratorium under section 14 of the IBC does not bar proceedings to determine liability of the corporate debtor, and accordingly found Amtek Auto Limited liable for violating regulations 51(1), 51(2) r/w Part B of Schedule III (Clauses A1, A4, A9), 52(4), 52(5), 54(2), 57(1) and 60(2) of the LODR Regulations, 2015, imposing penalty under section 15A(b) of the SEBI Act, 1992.

Full text

Adjudication order in respect of Amtek Auto Limited Page 2 of 26 the view that there are grounds to adjudicate upon the alleged violations, vide communication order dated August 26, 2019 Shri V.S. Sundaresan was appointed as Adjudicating Officer (in short AO), under section 15-I of The Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the SEBI Act, 1992) r/w rule 3 of Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) 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), 54(2), 57(1) and 60(2) of LODR Regulations, 2015. The said matter was transferred and undersigned was appointed AO, which was conveyed vide communique dated December 26, 2019, whereas the record was conveyed vide office note dated January 16, 2020.

Adjudication order in respect of Amtek Auto Limited Page 3 of 26 a) “OD observed that the Noticee had issued and listed series of Non-Convertible Debt securities (hereinafter referred to as “NCDs”) during the period 2008 to 2015, the details of which are as follows: ISIN Listing Date INE130C07093 04/11/2008 INE130C07150 04/03/2011 INE130C07168 08/05/2009 INE130C07176 08/05/2009 INE130C07192 16/10/2009 INE130C07184 16/10/2009 INE130C07200 16/10/2009 INE130C07234 02/01/2015 INE130C07242 21/01/2015 INE130C07259 30/01/2015 INE130C07267 19/03/2015 INE130C07275 07/04/2015 INE130C07283 23/04/2015 INE130C07291 20/05/2015

Adjudication order in respect of Amtek Auto Limited Page 4 of 26 received from the Noticee despite SEBI communications vide emails dated November 02, 2018 and reminders dated November 13, 2018, November 19, 2018 and November 28, 2018. The copies of the same provided to the Noticee as Annexure-II. d) From the above, it was observed by OD 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: i. 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 3of SCN. Thus, the Noticee has alleged to have violated Regulation 51(1) of the LODR Regulations. ii. The Noticee has failed to disclose the expected default and/or the action that shall affect adversely in timely payment of interests/principal in respect of NCDs. The Noticee has also failed to disclose the delay/default in payment of interest/principal amount for a period of more than three months from the due date. Thus, the Noticee has alleged to have violated Regulation 51(2) read with Part B of Schedule III (Clause A1, A4, A9) of the LODR Regulations. iii. The Noticee while submitting the financial results for the period ended 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, June 30, 2018, S

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