sebi:Order/VV/PSS/2023-24/28469

SEBI · SEBI · 2023-04-06 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Violations found; monetary penalty imposed on Noticee Arun Panchariya under Section 15HA of SEBI Act, 1992

Provisions invoked

• s. 11
• s. 15
• s. 12A
• s. 12
• s. 15H
• s. 15I
• s. 15J
• s. 15F
• s. 28A
• s. 376

Regulations

• Reg. 4
• Reg. 2(c)
• Reg. 3
• Reg. 4(1)
• Reg. 3(a)

Parties

• Arun Panchariya

Holding

Noticee Arun Panchariya violated Section 12A(a), (b) and (c) of the SEBI Act, 1992 read with Regulations 3(a), (b), (c), (d) and 4(1) of the SEBI (PFUTP) Regulations, 2003 by devising and structuring a fraudulent GDR issuance scheme through connected entities, and is liable to monetary penalty under Section 15HA.

Full text

Adjudication order in the matter of Disclosures by Nakoda Ltd in respect of its GDR issue. Page 2 of 44 “12. In view of the aforesaid, we are of the affirmed view that the matter proceeded ex-parte against the appellant without serving a show cause notice and without giving an opportunity of hearing. The impugned order consequently is violative of the principles of natural justice and cannot be sustained. All the impugned orders insofar as the appellant is concerned are quashed. The appeals are allowed. The matter is remitted to the AO to pass a fresh order after providing a show cause notice and after providing an opportunity of hearing to the appellant. All the misc. applications are accordingly disposed of.” B. APPOINTMENT OF ADJUDICATING OFFICER

Adjudication order in the matter of Disclosures by Nakoda Ltd in respect of its GDR issue. Page 3 of 44 by initial GDR subscribers, it has been informed that in respect of GDR issue of Nakoda, M/s. Vintage FZE (“Vintage”), now known as Alta Vista International FZE had availed loan against the GDR proceeds of Nakoda. Accordingly, SEBI had investigated the GDR issue of Nakoda during the issuance of GDR i.e, November 01, 2010 to December 31, 2010 (hereinafter referred to as Investigation Period (“IP”)) to ascertain as to whether: A) GDRs were issued with the intention of defrauding Indian investors B) Shares underlying GDRs were issued with proper consideration and C) Appropriate disclosures with respect to Listing Agreement, if any were made Details of issuance of GDRs 4.2) Nakoda issued 20,00,000 GDRs (US$ 24.25 million approximately INR 108.00 crores) on November 26, 2010. Summary of the GDR issue is tabulated below: GDR issue date No. of GDRs issued (mn.) Capital raised (US$ mn.) Local custodian No. of equity shares underlying GDRs Global Deposito ry Bank Lead Manager Bank where GDR proceeds deposited GDRs listed on 26-11- 2010 2.00 24.25 DBS Bank, Mumbai

Adjudication order in the matter of Disclosures by Nakoda Ltd in respect of its GDR issue. Page 4 of 44 Sl. No. Name of the subscriber Country of subscriber Amount in US$ 5 ALTG Holdings Ltd Hong Kong 33,95,000 6 Santis Family holdings Inc UAE 35,16,250 7 Icon Holdings Ltd UAE 33,95,000

Source: SecMarx — sebi:Order/VV/PSS/2023-24/28469. 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.