sebi:Order/VV/AK/2022-23/16714-16718
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Facts / Headnote
Penalties imposed on Noticees 1-5 for violations; Noticees 1, 4 and 5 proceeded ex-parte; Noticees 2 and 3 submissions considered
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 19
- s. 12A
- s. 12
- s. 15H
- s. 15I
- s. 15J
- s. 11C(6)
- s. 11C
- s. 23J
- s. 23
- s. 23E
- s. 21
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 200
Parties
- Coral Hub Ltd (Noticee 1)
- G.S. Chandrashekar (Noticee 2)
- Dilip C Parekh (Noticee 3)
- G.S. Vishwanatham (Noticee 4)
- Promoter of CHL (Noticee 5)
Holding
CHL and its directors (Noticees 2-4) were held liable for publishing false, inflated sales and misleading financial results during FY 2008-09 and FY 2009-10 in violation of Section 12A of the SEBI Act and Regulations 3 and 4 of the PFUTP Regulations, and for failing to disclose related party transactions in violation of Clause 32 of the Listing Agreement read with Section 21 of the SCRA. Noticee 5 (promoter) was held liable for non-compliance with summons under Sections 11C(2), 11C(3) and 11C(6) of the SEBI Act.
Full text
Adjudication order with respect to 5 entities Page 2 of 42 in the matter of Coral Hub Limited (hereinafter referred to as the “SEBI Act”), SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulation”) and Securities Contracts (Regulations) Act, 1956 (hereinafter referred to as “SCR Act”).
Adjudication order with respect to 5 entities Page 3 of 42 in the matter of Coral Hub Limited 4. Thereafter, a common show cause notice (hereinafter referred to as ‘SCN’) dated February 18, 2022 was issued to the Noticees (Noticee 1-4) in the matter of CHL to show cause as to why suitable directions under Sections 15HA, and 23E of the SEBI Act should not be issued against Noticees for the alleged violations of provisions as specified in the SCN. Further, a show cause notice dated February 17, 2022 was issued to the Noticee 5 under section 15A(a), in the matter of CHL to show cause as to why suitable directions under Sections 15A(a) of the SEBI Act, 1992 should not be issued against Noticee 5 for the alleged violations of provisions 11(C)(2), 11(C)(3) and 11(C)(6) of the SEBI Act.
Adjudication order with respect to 5 entities Page 4 of 42 in the matter of Coral Hub Limited Table No 3 S.N. Name of the Party 2008-09 % of the sales to the total sales 2009-10(12 months)** % of the sales to the total sales 1 Raydox Technologies FZ LLC 22,95,13,924 37.57 21,99,43,816 28.93 2 Avington Solutions Ltd. 0 - 1,72,59,682 2.27 3 Rochelle Associates Ltd. 0
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Source: SecMarx — sebi:Order/VV/AK/2022-23/16714-16718. 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.