sebi:WTM/AB/EFD-1/DRA-4/18/2019-20
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Facts / Headnote
Directions issued: TBL directed to recall $38.5 million within one year; TBL restrained from securities market until compliance plus two years; Noticees 2, 3 and 4 restrained from securities market for five years from interim order date; existing holdings frozen.
Provisions invoked
- s. 19
- s. 12A
- s. 12
- s. 21
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 2(c)
- Reg. 3(a)
- Reg. 12
- Reg. 12(2)
Parties
- Transgene Biotek Limited (Noticee no. 1)
- Dr. K. Koteswara Rao (Noticee no. 2)
- Mr. Soma Sekhar Marthi (Noticee no. 3)
- Mr. Narayana Murthy Pentyala (Noticee no. 4)
- Sristek Consulting Pvt. Ltd. (Noticee no. 5)
- Noticee no. 6 (name not specified in text)
- Mr. Sampath Meesala (Noticee no. 7)
Holding
The Adjudicating Officer found Noticee no. 1 (TBL) and Noticees 2, 3, 4 and 6 liable for violations of Section 12A(a), (b) and (c) of the SEBI Act read with Regulations 3(a)-(d) and 4(1) of the PFUTP Regulations, 2003 (and related provisions), in connection with the diversion of GDR proceeds and false disclosures. Directions were issued requiring TBL to recall $38.5 million within one year and imposing market access restraints on TBL and Noticees 2-4.
Full text
Order in the matter of Transgene Biotek Limited Page 2 of 37 2. On the basis of finding of preliminary examination, an ex parte ad interim order dated November 20, 2014 was passed by SEBI, pending investigation in the matter, directing TBL to not to issue equity shares or any other instrument convertible into equity shares or any other security till further orders and restraining Noticee no. 2, Noticee no. 3, Noticee no. 4, Shri Prashant Kumar Ghosh, Smt. K Nirmala Rao and Shri K Srinivas, from accessing the securities market and further prohibited them from buying, selling or dealing in securities in any manner whatsoever, till further directions. Thereafter, after hearing the noticees to the aforesaid ex parte interim order, an order dated March 09, 2016 was passed by SEBI whereby confirming the directions contained in the aforesaid ex parte interim order.
Order in the matter of Transgene Biotek Limited Page 3 of 37 2003 (hereinafter referred to as "PFUTP Regulations"), Section 21 of Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCRA”) read with Clauses 36 and 50 of Listing Agreement and Regulation 12(2) read with Schedule II to SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as “PIT Regulations, 2012”) read with Regulation 12 of SEBI (Prohibition of Insider Trading) Regulations, 1995 (hereinafter referred to as “PIT Regulations, 2015”); and
Order in the matter of Transgene Biotek Limited Page 4 of 37 11. Copy of Letter dated June 24, 2014 from TBL to SEBI 11 12. Copy of Letter dated July 14, 2014 from TBL to SEBI 12
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Source: SecMarx — sebi:WTM/AB/EFD-1/DRA-4/18/2019-20. 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.