sebi:PM/NR/2020-21/9602-9607
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Provisions invoked
- s. 15
- s. 19
- s. 12A
- s. 12
- s. 15H
- s. 15I
- s. 15J
- s. 376
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 2(c)
- Reg. 3(a)
- Reg. 3(c)
Parties
- Tulsi Extrusions Ltd.
- Noticee 1 (non-executive director)
- Noticee 2 (CEO)
- Noticee 3 (non-executive director)
- Noticee 4 (non-executive director)
- Noticee 5 (non-executive director)
- Noticee 6 (MD)
Holding
The Noticees, including Tulsi Extrusions Ltd. and its directors, were found to have committed fraud and unfair trade practices by concealing the Loan and Pledge Agreements relating to the GDR issue from investors. The Adjudication Officer held that the company and its directors misled the Indian securities market by presenting the GDR issue as a successful foreign subscription when it was in fact a premeditated arrangement with a single entity.
Full text
Adjudication Order 6 entities in the matter of Tulsi Extrusions Ltd., Page 2 of 33 (hereinafter referred to as “Vintage”) by way of a Loan Agreement dated August 11, 2010 (hereinafter referred to as the “Loan Agreement”) for making payment towards subscription to the entire GDR issued by Tulsi. The loan amount sanctioned to Vintage was the same as the amount of GDR issued by Tulsi i.e., USD 14.325 million, and, it was observed that the entire 1.25 million GDRs were subscribed by only one entity, i.e. Vintage.
Adjudication Order 6 entities in the matter of Tulsi Extrusions Ltd., Page 3 of 33 deposited in the said account were not at the disposal of the Company to utilize for its own needs till such time Vintage repaid the loan to EURAM Bank.
Adjudication Order 6 entities in the matter of Tulsi Extrusions Ltd., Page 4 of 33 APPOINTMENT OF ADJUDICATION OFFICER 8. Based on the findings of the investigation, SEBI initiated Adjudication proceedings against the Noticees and appointed Shri Jeevan Sonparote as the Adjudicating Officer vide Order dated May 23, 2017 (communicated vide Order dated July 18, 2017) under Section 19 read with Sub-section (1) of Section 15I of the SEBI Act, 1992 and Rule 3 of SEBI (Procedure for Holding Inquiry and imposing penalties) Rules, 1995 (hereinafter referred to as SEBI Adjudication Rules) to inquire into and adjudge the alleged violations of the provisions of SEBI Act and SEBI (PFUTP) Regulations, committed by the Noticees. Pursuant to internal restructuring, the instant proceedings have been transferred to the undersigned vide Order dated September 26, 2019.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:PM/NR/2020-21/9602-9607. 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.