sebi:QJA/GR/IVD/ID12/29908/2023-24
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Facts / Headnote
Show Cause Notice dated May 25, 2023 closed without issuance of any directions and without imposing any monetary penalty
Provisions invoked
- s. 11
- s. 19
- s. 12A
- s. 15G
- s. 12
- s. 2(1)
- s. 27(1)
Regulations
- Reg. 2(1)
- Reg. 4(1)
- Reg. 2(1)(g)
- Reg. 2(1)(n)(i)
- Reg. 3(1)
- Reg. 2(1)(n)
- Reg. 2(1)(e)
- Reg. 4(2)
- Reg. 2(n)
Parties
- Noticee No.1 (Mr. Arvind Kumar Saraf, Chairman & promoter)
- Noticee No.2 (Mr. Radha Nath Pattanayak, Whole Time Director)
- Noticee No.3
- Noticee No.4
Holding
The adjudicating officer closed the SCN dated May 25, 2023 against the Noticees without issuing any directions or imposing any monetary penalty, finding that the alleged UPSI period of February 14, 2018 to May 29, 2018 was not correctly identified and that the charges of insider trading were not established.
Full text
Order in the matter of Arcotech Ltd. Page 2 of 34 “SEBI Act, 1992”), and SEBI (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred to as “SEBI PIT Regulations”). The investigation was carried out for the period February 01, 2018 to June 30, 2018 (hereinafter referred to as “Investigation Period/ IP”). However, whenever deemed necessary, reference has been made to outside this period.
Order in the matter of Arcotech Ltd. Page 3 of 34 5. In the investigation, it was observed that with a view to overcome the liquidity tightness, the company had tied up with J M Financial Products Limited (herein after referred to as “JMFPL”) and got the sanction of Rs.100 crores loan at the better interest with 2 years’ moratorium on the capital repayment to pay off the existing loan of IFCI Limited with condition that the company have to obtain NOC from the consortium banks. In this connection, the company had requested the bank to give NOC and charge on securities created out of term loan vested with IFCI Limited in favor of J M Financial. However, it was observed that the company could not obtain the same.
Order in the matter of Arcotech Ltd. Page 4 of 34 while in possession of UPSI, were alleged to have passed on the same to Noticee No.3 and 4 who had sold the shares of Arcotech Ltd.
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Source: SecMarx — sebi:QJA/GR/IVD/ID12/29908/2023-24. 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.