sebi:PM/NR/2020-21/11122-11127
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Facts / Headnote
Noticee 2 held liable for violations of Section 12A(a),(b),(c) of SEBI Act read with Regulations 3(a),(b),(c),(d) and 4(1) of PFUTP Regulations; charges against Noticees 4 and 5 dropped in line with WTM Order dated November 2, 2020
Provisions invoked
- s. 11B
- s. 15
- s. 19
- s. 12A
- s. 12
- s. 21
- s. 15H
- s. 15I
- s. 15J
- s. 23I
- s. 23J
- s. 23
- s. 23E
- s. 77(2)
- s. 376
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- Resurgere Mines and Minerals India Ltd.
- Subhash Sharma (Noticee 2)
- Amit Sharma (Noticee 3)
- Noticee 4
- Burzin Somandy (Noticee 5)
- Noticee 6
Holding
The Noticee Company Resurgere and Noticee 2 (Subhash Sharma, CMD) were held to have violated Section 12A(a),(b),(c) of the SEBI Act read with Regulations 3(a),(b),(c),(d) and 4(1) of the PFUTP Regulations by facilitating a loan to the sole GDR subscriber Vintage FZE through a Pledge Agreement with EURAM Bank, thereby creating a false impression of foreign investor interest. Charges against Noticees 4 and 5 (independent directors) were dropped in line with the WTM Order dated November 2, 2020.
Full text
Adjudication Order in the matter of Resurgere Mines and Minerals India Ltd., Page 2 of 51 2. The shares of Resurgere were listed on the Bombay Stock Exchange (BSE). It was observed that Resurgere issued 52,08,333 GDRs (amounting US$53.75 million) representing 3,12,49,998 underlying Equity Shares of ₹10/- each on June 25, 2010. The investigation revealed that EURAM Bank (hereinafter referred to as “EURAM”) had granted loan to Vintage FZE (hereinafter referred to as “Vintage”) by way of a loan agreement dated June 16, 2010 (hereinafter referred to as the “Loan Agreement”) for enabling them to subscribe to the GDR issued by Resurgere and it was observed that the entire 5.21 million GDR were subscribed by only one entity, i.e., Vintage.
Adjudication Order in the matter of Resurgere Mines and Minerals India Ltd., Page 3 of 51 has enabled Vintage to avail loan from EURAM for subscribing to the GDRs of Resurgere.
Adjudication Order in the matter of Resurgere Mines and Minerals India Ltd., Page 4 of 51 Section 12A (a), (b), (c) of SEBI Act,1992 read with Regulations 3(a), 3(b), 3(c), 3(d) and 4(1) of SEBI (PFUTP) Regulations.
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Source: SecMarx — sebi:PM/NR/2020-21/11122-11127. 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.