sebi:Order/VV/AK/2022-23/16782-16799
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Facts / Headnote
Violations established for deviation from objects of issue and siphoning of IPO proceeds and for disclosure failures; Noticee 1 held in violation of Clause 32, Clause 43, ICDR and PFUTP provisions and Noticee Nos. 11-18 held as parties to routing scheme.
Provisions invoked
- s. 11B
- s. 11
- s. 15A
- s. 15
- s. 19
- s. 12A
- s. 12
- s. 62
- s. 15H
- s. 27
- s. 15J
- s. 21
- s. 23J
- s. 23
- s. 23E
- s. 15I(1)
- s. 279
- s. 446
- s. 73(2)
- s. 132
Regulations
- Reg. 3
- Reg. 200
- Reg. 3(b)
- Reg. 57
- Reg. 57(2)(a)
- Reg. 2
Holding
SIL deviated from the objects of its 2011 IPO and siphoned off approximately Rs. 64.43 crore out of Rs. 69.97 crore through controlled proprietorship firms, violating Clause 32, Clause 43, ICDR disclosure requirements and PFUTP provisions read with Section 12A of the SEBI Act.
Full text
Adjudication order in the matter of Sudar Industries Limited Page 2 of 106 S.N. Noticee Name PAN 16 Kamlesh Muthappa Nadar AEEPN4399F 17 Stalin Muthappa APSPM5576N 18 B Ravishankar Pai BKSPP5971Q
Adjudication order in the matter of Sudar Industries Limited Page 3 of 106 (hereinafter referred to as the “investigation period” / “IP”). However, wherever necessary, reference and/or inferences may have been drawn outside the period.
Adjudication order in the matter of Sudar Industries Limited Page 4 of 106 C. SHOW CAUSE NOTICE, REPLY AND HEARING 5. Consequent and subsequent to the conclusion of the abovementioned investigation, a common Show-Cause Notice dated December 15, 2017 (hereinafter referred to as “SCN”) was issued, calling upon to show cause as to why an inquiry should not be held against the Noticees in terms of Rule 4 of the SEBI (Procedure for holding enquires and imposing penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as “SEBI Adjudication Rules”) read with Section 15 I of the SEBI Act and Rule 4 of Securities Contracts (Regulation) (Procedure For Holding inquiry And Imposing Penalties) Rules, 2005 (hereinafter referred to as “SCRA Adjudication Rules”) and Section 23 I of SCRA and adjudge under sections 15A(b), 15HA and 15HB of the SEBI Act and under section 23E of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCRA”) for the alleged violations as specified in the SCN.
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Source: SecMarx — sebi:Order/VV/AK/2022-23/16782-16799. 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.