sebi:WTM/AB/EFD-1/DRA-1/13/2018-19
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Facts / Headnote
Noticee No.1 directed to recover USD 27.244 million from Noticee No.8 and bring back into SML's bank account in India within three months; Noticee Nos.2-8 restrained from securities market for five years with holdings frozen; Noticee No.1 restrained till expiry of five years from date of bringing back money.
Provisions invoked
- s. 19
- s. 11(1)
- s. 12A
Regulations
- Reg. 4
- Reg. 3
- Reg. 3(a)
Parties
- Sanraa Media Ltd.
- Mr. Annaswami Venkatramani
- Mrs. Uma Karthikeyan
- Mr. Sukumar Subramanian
- Mr. Rajeev Agarwal
- Mr. Krishnan Rajagopal
- Mr. Rajendran Sivashankaran
- Clifford Capital Partners A.G.S.A.
Holding
SEBI held SML, its directors (Noticee Nos.2-7) and Clifford Capital Partners (Noticee No.8) violated Section 12A of the SEBI Act and PFUTP Regulations through a fraudulent GDR scheme, directing SML to recover USD 27.244 million from Noticee No.8 and restraining Noticees 2-8 for five years with Noticee No.1 restrained till repatriation plus five years.
Full text
Order in the matter of Sanraa Media Ltd. Page 2 of 18 GDR issue date No. of GDRs issued (mn.) Capita l raised (USD mn.) Local custo dian No. of equity shares underlying 1 GDR Globa l Depos itory Bank Lead Manage r Bank where GDR proceeds deposite d GDRs listed on 02- May 2008 10.00 27.50 ICICI Bank
Order in the matter of Sanraa Media Ltd. Page 3 of 18 8 Copy of CEO/CFO certificate dated September 4, 2009, issued by Noticee no. 4 and Noticee no. 3 9 Copy of SML’s Banco Bank Account Statement, which contains details of GDR proceeds received by SML. 10 Copy of email sent to HDFC Bank by SEBI seeking statement of account for the current account maintained by SML.
Order in the matter of Sanraa Media Ltd. Page 4 of 18 Noticee no. 8 to avail loan from Banco for subscription of GDRs of SML by providing GDR proceeds as collateral for the loan extended by Banco to Noticee no. 8. The GDR issue would not have been subscribed if SML had not given such security towards the loan taken by Noticee no. 8. Hence, investigation concluded that SML and its directors namely Noticee no. 2 to 7, acted as party to the fraudulent scheme. Further, the fraudulent arrangement of Credit Agreement and Account Charge Agreement, which resulted in facilitating the subscription of GDR issue of the company was not disclosed to the stock exchange.
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Source: SecMarx — sebi:WTM/AB/EFD-1/DRA-1/13/2018-19. 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.