sebi:SO/AA/HP/2022-23/6654-6658
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Facts / Headnote
Adjudication proceedings initiated under SCN dated September 24, 2021 disposed of upon settlement
Provisions invoked
- s. 15
- s. 12A
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 25
- Reg. 23(1)
- Reg. 3(b)
- Reg. 33
- Reg. 4(2)(f)(i)
Parties
- Sobha Ltd.
- Ravi Puthan Naduvakkat Chentha Maraksha Menon
- Jagdish Chandra Sharma
- Ramakrishnan Prabhakaran
- Subhash Mohan Bhat
Holding
In exercise of powers under Section 15JB of the SEBI Act read with Regulation 23(1) of the SEBI (Settlement Proceedings) Regulations, 2018, the adjudication proceedings initiated against Sobha Ltd. and four individuals under SCN dated September 24, 2021 are disposed of following payment of the settlement amount.
Full text
Settlement Order in the matter of Sobha Ltd. Page 2 of 6 1. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) initiated adjudication proceedings against Sobha Ltd. (‘Noticee 1 / the Company / Sobha’), three of its Executive Directors, namely, Ravi Puthan Naduvakkat Chentha Maraksha Menon, Chairman and Executive Director (‘Noticee 2’), Jagdish Chandra Sharma, Managing Director and Executive Director (‘Noticee 3’), Ramakrishnan Prabhakaran, Deputy Managing Director and Executive Director (‘Noticee 4’) and Subhash Mohan Bhat, Chief Financial Officer (‘Noticee 5’) under Section 15HA of SEBI Act for alleged violation of Regulations 3 (b), (c), (d) & 4(1) and (2) (f), (k) and (r) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (‘PFUTP Regulations’) read with Section 12A (a), (b), (c) of the SEBI Act, 1992 (‘SEBI Act’) and under Section 15HB of the SEBI Act for alleged violation of the SEBI (Listing Obligation and disclosure Requirements) Regulations, 2015 (‘LODR Regulations’) .
Settlement Order in the matter of Sobha Ltd. Page 3 of 6 5. SEBI conducted an investigation inter alia into certain transactions undertaken by Sobha with Shri D.K. Shivakumar (‘DKS’) and his family members/associates which was allegedly against the interest of the minority shareholders of Sobha. The period of examination is three financial years FY 2016-17, FY 2017-18 & FY 2018-19 (hereinafter referred to as the ‘Investigation period/ IP’).
Settlement Order in the matter of Sobha Ltd. Page 4 of 6 and Shri D. K. Suresh in FY 2016-17, FY 2017-18 and FY 2018-19. The aforesaid fraudulent misrepresentations led to publication of manipulated financial results for the FY 2016-17, FY 2017-18 and FY 2018-19, which were untrue and misleading and operated as deceit not only on the shareholders of Sobha but also on the public being misled about the financial health of the company. Accordingly, Sobha was alleged to have violated Regulations 3(b), 3(c), 3(d), 4(1), 4(2)(f), 4(2)(k), 4(2)(r) of PFUTP Regulations read with Section 12A(a), (b),(c) of SEBI Act and Regulation 33 of LODR Regulations.
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Source: SecMarx — sebi:SO/AA/HP/2022-23/6654-6658. 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.