sebi:SO/AN/EFD2/2023-24/6860

SEBI · SEBI · 2023-07-20 · Ananth Narayan G. (Whole Time Member), Amarjeet Singh (Whole Time Member)

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Settled

Provisions invoked

• s. 19
• s. 15J

Regulations relied on

• SEBI (SAST) Regulations, 2011 — 6A

Holding

Any enforcement proceedings that may be initiated for the violations mentioned in paragraph 1 are settled on payment of Rs 8,40,000 and a voluntary 12-month restraint from accessing the securities market. SEBI shall not initiate enforcement action for the said violations, subject to its rights under Regulation 28 of the Settlement Regulations.

Full text

2 and Mr. Ashish Maheshwari were issued a no-dues certificate in March, 2022 by SIDBI and were no longer categorized as wilful defaulters. However, in 2017, at the time of making the open offer, in terms of Regulation 2(1)(ze) of SAST Regulations, the Applicant came within the definition of “wilful defaulter” as it also “includes any person whose director, promoter or partner is categorized as such.” Regulation 6A of SAST Regulations, inter alia, prohibits a wilful defaulter from making a public announcement. Hence, the Applicant suo motu filed the instant settlement application to settle the said non-compliance soon after Mr. Ashish Maheshwari came out of the category of wilful defaulter.

3 of India Act, 1992 and in terms of Regulations 23 of the Settlement Regulations, it is hereby ordered that any proceedings that may be initiated for the violations as mentioned in paragraph 1 above are settled in respect of the Applicant on the following terms:

4

Source: SecMarx — sebi:SO/AN/EFD2/2023-24/6860. 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.