sebi:PM/NR/2020-21/9398

SEBI · SEBI · 2013-02-06 · Prasanta Mahapatra, Adjudicating Officer

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Facts / Headnote

Adjudication proceedings disposed of without decision on merits; held cannot be proceeded with

Provisions invoked

• s. 15
• s. 19
• s. 12A
• s. 21
• s. 15H
• s. 23
• s. 23E
• s. 279
• s. 446
• s. 391

Regulations

• Reg. 57(1)
• Reg. 3(a)

Parties

• Paramount Printpackaging Ltd.

Holding

The adjudication proceedings initiated against Paramount Printpackaging Ltd. vide SCN dated April 26, 2018 cannot be proceeded with for want of leave of the winding-up Court/Tribunal, and the matter is accordingly disposed of.

Full text

Adjudication Order in respect of Paramount Printpackaging Ltd., Page 2 of 8 2. The objects of the issue and cost of project as estimated by the management as disclosed in the Prospectus were as under: Sl. No. Objects of the issue Funds required (₹in Lacs) A. Setting up new facility for manufacturing high end duplex board cartons, Shippers and printed corrugated box at Gujarat 3,194.27 B. Augmenting Long Term Working Capital Requirement 495.82

Adjudication Order in respect of Paramount Printpackaging Ltd., Page 3 of 8 publication of misleading information in the RHP/Prospectus thus influencing investors to purchase the shares of the company. Further, the disclosures on utilization of IPO proceeds, which have been provided by the company in the notes to the financial results for each of the quarters during June 2011 until December 2012 was not true and the same is misleading and contains information in a distorted manner, which may influence the decision of the investors. Further as required under clause 43A, the company has not furnished to the stock exchange on a quarterly basis, a statement indicating material deviations in the use of proceeds of public issue.

Adjudication Order in respect of Paramount Printpackaging Ltd., Page 4 of 8 SHOW CAUSE NOTICE, REPLY AND HEARING 6. A Show Cause Notice (hereinafter referred to as “SCN”) bearing ref. EAD/AO- PM/NK/12676/2018 dated April 26, 2018 was issued to the Noticee under Rule 4 of SCR Adjudication Rules and SEBI Adjudication Rules to show cause as to why an inquiry be not held against it in terms of Rule 4 of the SCR Adjudication Rules and SEBI Adjudication Rules and penalty be not imposed under Section 23E of SCRA and Section 15HA of the SEBI Act, 1992, for the violations alleged to have been committed by it. I note that the SCN sent by Speed Post to the Noticee returned undelivered. Thereafter, the SCN was sent by email to the Noticee under Rule 7 (b) of SCR Adjudication Rules and SEBI Adjudication Rules on August 27, 2020 requiring the Noticee to furnish its reply, if any, by September 15, 2020, besides providing with an opportunity of hearing on September 18, 2020. I note that the email sent to the Noticee did not bounce. In view of the prevailing circumstances owing to Covid-19 pandemic, the hearing was scheduled through video conferencing on Webex platform on September 18, 2020 and accordingly the login credentials were sent to the Noticee. However, I note that the Noticee neither submitted its reply nor appeared for the hearing. Further, the SCN addressed to the Noticee was sent to Shri Divyesh Sukhadia, Managing Director of the Company vide email dated September 25, 2020, where

Source: SecMarx — sebi:PM/NR/2020-21/9398. 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.