sebi:Order/VV/AA/2021-22/12807
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Facts / Headnote
Violation found; penalty of Rs. 1,00,000 imposed under Section 15HB of the SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 77(2)
- Reg. 73(2)
Parties
- Shri R. Mugunthan
Holding
The Noticee, as statutory auditor of PSTL, violated Clause 13.5.1(a) and 13.5.1(b) of the DIP Guidelines read with Regulation 73(2) of the ICDR Regulations, 2009 by issuing a false certificate dated April 9, 2009 regarding receipt of 10% upfront warrant money, and is liable to a monetary penalty of Rs. 1,00,000 under Section 15HB of the SEBI Act.
Full text
Page 2 of 15 11, 2009 PSTL allotted 14,85,000 shares on conversion of warrants at Rs. 310/- per share. 3. For acquiring the warrants, in terms of clause 13.1.2.3 (a) of SEBI (Disclosure & Investor Protection) Guidelines, 2000 (hereinafter referred to as ‘DIP Guidelines’) Mr. P.S. Saminathan had to pay Rs. 11.28 crore being 10% of the price towards subscription of 36,40,000 warrants at the time of application. It is observed that Shri R Mugunthan (hereinafter referred to as ‘the Noticee’) was the statutory auditor of PSTL at the said time and had given a certificate dated April 9, 2009 stating that PSTL received on October 12, 2007 the 10% upfront money amounting to Rs.11,28,40,000/- against original allotment of 36,40,000 share warrants and further the company has also received on various dates up to February 28, 2009 the balance of 90% application/ allotment money amounting to Rs.41,43,15,000/-, towards allotment of 14,85,000 equity shares on conversion of equal number of share warrants from the warrant holder, and that there is no circulation of funds or mere passing of book entries in this regard.
Page 3 of 15 5. Therefore, it was alleged that the Noticee had given a false certificate regarding receipt of Rs.11.28 crore by PSTL on October 12, 2007 towards subscription money for the warrants. Further, the Noticee had certified that the balance of 90% application/ allotment money amounting to Rs.41,43,15,000/-, towards allotment of 14,85,000 equity shares on conversion of equal number of share warrants has been received by PSTL from the warrant holder. However,
Page 4 of 15 Sl. No. Date Amount received Name of the bank in which the amount was received Amount credited to the account of Amount received from 10.
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Source: SecMarx — sebi:Order/VV/AA/2021-22/12807. 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.