sebi:WTM/AB/CFID/CFID_1/20686/2022-23
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Facts / Headnote
Violations established against BDMCL and connected noticees; directions under Sections 11(1), 11(2)(e), 11(4), 11B(1) of SEBI Act including 1-year securities market restraint on Noticee nos. 2,6,7,8,9, 1-year prohibition on association as director/KMP on Noticee nos. 3,4,5,10, and monetary penalties under Sections 15HA/15HB imposed on Noticee nos. 1-11.
Provisions invoked
- s. 11A
- s. 19
- s. 11(1)
- s. 11B
- s. 12A
- s. 12
- s. 11(2)
- s. 11
- s. 15H
- s. 15J
- s. 2(1)
- s. 30
- s. 20
- s. 2(54)
- s. 2(76)
- s. 129
- s. 129(1)
- s. 2(6)
- s. 129(3)
- s. 11B(1)
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 4(2)
- Reg. 4(2)(f)
- Reg. 3(b)
- Reg. 4(2)(e)
- Reg. 103
- Reg. 3(d)
- Reg. 4(2)(r)
- Reg. 30
- Reg. 2(1)(b)
- Reg. 48
- Reg. 17(8)
- Reg. 4(1)(c)
- Reg. 33(2)(a)
- Reg. 2
- Reg. 33(3)(b)
- Reg. 27
- Reg. 33(2)(d)
Parties
- Bombay Dyeing & Manufacturing Company Limited
- Scal Services Ltd.
- Mr. Nusli N Wadia
- Mr. Ness N Wadia
- Mr. Jehangir N Wadia
- Mr. D S Gagrat
- Mr. N H Datanwala
- Mr. Shailesh Karnik
- Mr. R Chandrasekharan
- Mr. Durgesh Mehta
Holding
BDMCL fraudulently inflated its sales by Rs. 2,492.94 crores and profit by Rs. 1,302.20 crores during FY 2011-12 to FY 2017-18 by recognizing revenue on MoUs with Scal, a controlled group entity, and publishing untrue financial statements in violation of Sections 12A(a)-(c) and Regulations 3(b)-(d), 4(1), 4(2)(e),(f),(k),(r) of PFUTP Regulations, with directors/CFO aiding and abetting.
Full text
Final Order in the matter of The Bombay Dyeing and Manufacturing Company Ltd. Page 1 of 100 WTM/AB/CFID/CFID_1/20686/2022-23
Final Order in the matter of The Bombay Dyeing and Manufacturing Company Ltd. Page 2 of 100 ‘the SCN’) was issued to the Noticees, calling upon them, to inter alia show cause as to why they should not be held liable for violation of Regulation 3(b), 3(c), 3(d), 4(1), 4(2)(e), 4(2)(f), (4)(2)(k) and 4(2)(r) of SEBI (Prevention of Fraudulent and Unfair Trade Practices relating to securities market) Regulations, 2003 (hereinafter referred to as ‘the PFUTP Regulations, 2003’) r/w Section 12A(a), 12A(b), 12A(c) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act, 1992”).
Final Order in the matter of The Bombay Dyeing and Manufacturing Company Ltd. Page 3 of 100 Details of Scal Services Ltd. (‘Scal’)
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Source: SecMarx — sebi:WTM/AB/CFID/CFID_1/20686/2022-23. 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.