sebi:QJA/GG/IVD/ID2/23009/2022-23
Facts / Headnote
Disposed without any direction
Provisions invoked
- s. 19
- s. 12A
- s. 12(3)
Regulations relied on
- SEBI (Intermediaries) Regulations, 2008 — 27
- SEBI (PFUTP) Regulations, 2003 — 3(a)
Parties
- Monarch Networth Capital Limited
Holding
The enquiry proceedings initiated against Monarch Networth Capital Limited vide SCN dated February 12, 2021 are disposed of without any direction, as the allegation of violation of Section 12A and PFUTP Regulations was held not established.
Full text
Enquiry Order in the matter of Monarch Networth Capital Limited Page 2 of 14 substantial part of its IPO proceeds in order to offset losses sustained by certain entities who had allegedly provided an exit to retail allottees/Qualified Institutional Buyers (“QIBs”) of their shares allotted in the IPO, at a premium to the issue price. Pinac Stock Brokers Private Limited (hereinafter referred to as “Pinac”) was found to be one such entity that had allegedly provided an exit to retail allottees and the losses sustained by it in doing so, were allegedly found to be partly borne by TPL through layered fund transactions and by its stock brokers viz. Monarch Projects and Finmarkets Ltd. (hereinafter referred to as “MPFL”) on NSE and Monarch Research and Brokerage Pvt. Ltd. (hereinafter referred to as “MRBL”) on BSE.
Enquiry Order in the matter of Monarch Networth Capital Limited Page 3 of 14 alleged against MPFL and MRBL. During the course of the proceedings, it was brought on record that pursuant to a scheme of amalgamation approved by the Hon'ble High Court of Judicature of Bombay, vide an order dated August 07, 2014, MPFL and MRBL were merged / amalgamated into a new entity viz. Monarch Networth Capital Limited (hereinafter referred to as “Noticee”) with effect from August 21, 2015. Accordingly, vide communique dated February 09, 2021, the proceedings initiated against the transferor entities viz. MPFL and MRBL were continued against the transferee entity i.e. the Noticee. Therefore, the instant proceedings are lying against the Noticee under the provisions of Intermediaries Regulations, 2008.
Enquiry Order in the matter of Monarch Networth Capital Limited Page 4 of 14 Thereafter, the Noticee made its submissions vide its letter dated November 01, 2021.
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Source: SecMarx — sebi:QJA/GG/IVD/ID2/23009/2022-23. 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.