sebi:PKB/AO-65/2010
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Facts / Headnote
Penalty of Rs. 5,00,000 imposed on Fourth Generation Information Systems Ltd. for violation of Sections 11C(2) and 11C(3)
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 12
- s. 15J
- s. 11C
Parties
- Fourth Generation Information Systems Ltd.
Holding
Fourth Generation Information Systems Ltd. violated Sections 11C(2) and 11C(3) of the SEBI Act, 1992 by failing to comply with summons dated December 13, 2007, and is liable to monetary penalty of Rs. 5,00,000 under Section 15A(a).
Full text
Adjudication Order In Respect of Fourth Generation Information Systems Ltd. Page 2 of 10 May 21, 2010 3. Information was sought from the noticee through summons on the details like transactions done by promoters, persons acting in concert, preferential allotment, the noticee’s relationship (including directors, shareholders etc.) with Parklight Investments Pvt Ltd (PIPL), H Nyalchand and Uday Vora, details of fund flow among these entities, funds gathered by public issue and use of these funds, copy of bank statements. The noticee submitted the information stating that there was no change in the shareholding in the promoters, directors of the company during the investigation period till September 30, 2001, denied relationship with brokers stated above and also denied giving any loans, advances, ICD etc, no specific agreement was entered into with the brokers stated above. Regarding the utilization of funds, the noticee vide letter dated March 15, 2005 informed that out of the IPO proceeds, Rs. 1.35 Crores were used for repaying the term loan taken from Bank of Madura along with accumulated interest.
Adjudication Order In Respect of Fourth Generation Information Systems Ltd. Page 3 of 10 May 21, 2010 Securities and Exchange Board of India Act, 1992 Investigation
Adjudication Order In Respect of Fourth Generation Information Systems Ltd. Page 4 of 10 May 21, 2010 to opt for consent and submitted an application for the same. The matter could not be settled as per terms proposed by the noticee and thereafter, adjudication proceedings recommenced against the noticee.
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Source: SecMarx — sebi:PKB/AO-65/2010. 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.