sebi:WTM/AB/ISD/ISD-FAC/9555/2020-21
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Facts / Headnote
Violations found against all Noticees; directions issued including restraint on trading in securities of IISL, prohibition on promoters/directors from selling shares, and restraint of individual Noticees from accessing the securities market for specified periods.
Provisions invoked
- s. 11B
- s. 11
- s. 19
- s. 12A
- s. 11(2)
- s. 21
- s. 31
- s. 128
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(b)
- Reg. 4(2)(f)
- Reg. 4(1)(c)
- Reg. 4(2)(f)(i)
Parties
- Indian Infotech & Software Limited (Noticee no. 1)
- Kamal Nayan Sharma (Noticee no. 2)
- Varsha Muraka (Noticee no. 3)
- Harish Joshi (Noticee no. 4)
- Mukund Bhardwaj (Noticee no. 5)
Holding
IISL (Noticee no. 1) violated Regulations 4(1)(c), (e), (g) and 4(2)(f) of the LODR Regulations, Regulation 4(1) and 4(2)(f) and (r) of the PFUTP Regulations, and Sections 11(2)(i) and 11(2)(ia) of the SEBI Act, 1992. Noticees 2, 3, 4 and 5 were also found to have violated the LODR Regulations, PFUTP Regulations and Section 21 of the SCRA, with Noticees 2, 3 and 4 additionally violating Sections 11(2)(i) and 11(2)(ia) of the SEBI Act and Noticee 5 violating Clause 49(ix) of the erstwhile Listing Agreement read with Section 21 of the SCRA.
Full text
Final Order in the matter of Indian Infotech and Software Limited Page 2 of 52 2. The brief narrations of the facts leading to the issue of aforesaid SCN is as under:
Final Order in the matter of Indian Infotech and Software Limited Page 3 of 52 d. Company had done all the compliances with respect to LODR Regulations. e. Company had obtained certificate from the Auditor stating that the company is a going concern and no default has been made with regard to the Companies Act, 2013 and Income Tax and all the above requirements are complied with f. Company submitted the Certificate of Registration obtained from the Reserve Bank of India (RBI) for carrying on the business as an NBFC Company.
Final Order in the matter of Indian Infotech and Software Limited Page 4 of 52 iii The promoters and directors in IISL are permitted only to buy the securities of IISL. The shares held by the promoters and directors in IISL shall not be allowed to be transferred for sale, by depositories. iv The other actions envisaged in SEBI’s letter dated August 07, 2017 in para 1 (d), as may be applicable, and the consequential action taken by Stock Exchanges shall continue to have effect against M/s Indian Infotech & Software Limited.
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Source: SecMarx — sebi:WTM/AB/ISD/ISD-FAC/9555/2020-21. 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.