sebi:WTM/AB/CFID/CFID_3/26905/2023-24
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Facts / Headnote
Noticee No. 1 restrained from accessing securities market for five years subject to NCLT orders under IBC proceedings, and Noticee Nos. 2 to 7 restrained from accessing securities market for five years, in supersession of interim order dated July 23, 2020 and confirmatory order dated July 8, 2021.
Provisions invoked
- s. 19
- s. 14
- s. 33
- s. 31(1)
- s. 11B(1)
- s. 27(1)
Regulations
- Reg. 6
- Reg. 4(1)
- Reg. 3(b)
- Reg. 46
- Reg. 3(d)
- Reg. 4(2)(f)
- Reg. 4(1)(a)
- Reg. 13(3)
- Reg. 31(1)
- Reg. 4(2)(f)(i)
- Reg. 30(6)
- Reg. 33(3)
- Reg. 33(5)
Parties
- M/s Five Core Electronics Ltd.
- Mr. Amarjit Singh Kalra
- Mrs. Surinder Kaur Kalra
- Mrs. Jagjit Kaur Kalra
- M/s Amarjit Singh Kalra HUF
- Mr. Surinder Singh Kalra
- M/s Surinder Singh Kalra HUF
Holding
Noticee Nos. 1 to 7 violated PFUTP Regulations for mis-utilization of IPO proceeds with intent to defraud, Noticee Nos. 1-4 violated PFUTP Regulations for false financial disclosure, and Noticee No. 1 violated LODR disclosure obligations; all Noticees were debarred from the securities market for five years.
Full text
Final Order in the matter of M/s.Five Core Electronics Ltd. Page 2 of 17 (b) The Noticee nos. 1 to 7 are restrained from being associated with any intermediary registered with SEBI or any listed entity or its material unlisted subsidiary, till further orders. (c) The Noticee nos. 1 to 7, are restrained from disposing, selling or alienating, in any other manner, their assets or divert funds, till further orders. (d) NSE shall appoint an independent Auditor/ Audit Firm for conducting a detailed forensic audit of the books of accounts of the company to confirm mis-utilization of IPO proceeds by the company. Such appointment of forensic auditor shall be done within 30 days of this order. (e)The Noticee nos. 1 to 7 shall extend necessary co–operation to the independent Auditor/ Audit Firms appointed as per this Order and shall furnish all information/documents sought from them from time to time. (f)The independent Auditor/ Audit Firm so appointed as per this Order shall submit a Report to SEBI through NSE within 3 months of date of its appointment.”
Final Order in the matter of M/s.Five Core Electronics Ltd. Page 3 of 17 Times, and for Noticee no. 2 to 7, the paper publication was done in the Mumbai edition of the Times of India, Navbharat Times and Maharashtra Times. The copy of the unserved SCN’s to the Noticees were also published on the SEBI website under the following path Enforcement>Unserved Summons/ Notices. The fact that the SCN’s were available for access on the SEBI website was also mentioned in the advertisement of paper publication. I note that no replies were received from any of the Noticees. Subsequently, an opportunity of personal hearing was granted to all the Noticees on January 11, 2023. The Hearing Notice dated November 30, 2022, retuned undelivered from Speed Post at the last known address of the Noticees in Delhi. Delivery of Hearing Notice to Noticee no. 1 and Noticee no. 4 was successful at the email address available on record. Ultimately, the Hearing Notice to all the Noticees were served through paper publication in the Delhi Edition of the Times of India and Navbharat Times. The copy of the unserved Hearing Notice to the Noticees were also published on the SEBI website under the following path Enforcement>Unserved Summons/ Notices. The fact that the Hearing Notice were available for access on the SEBI website was also mentioned in the advertisement of paper publication. I note that no one turned up for the personal hearing that was scheduled on January 11, 2023.
Final Order in the matter of M/s.Five Core Electronics Ltd. Page 4 of 17 General Corporate Purposes 5.60 Related parties 13.41 Import vendors 3.67 Salary Payment 0.78 Income Tax 0.52 Self-Withdrawal 0.24 *Others 1.04 Repayment of unsecured loans of promoters / directors 3.20 Issue expenses 4.67 4.59 Lead Manager Total 46.67 46.67 -
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Source: SecMarx — sebi:WTM/AB/CFID/CFID_3/26905/2023-24. 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.