sebi:WTM/AB/IVD/ID1/9413/2020-21
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Facts / Headnote
Noticees 1, 2, 3, 4, 5, 6, 8, 9, 10 and 11 restrained from accessing the securities market and dealing in securities for two years from the date of coming into force of the order; Noticee no. 12 restrained for six months; proceedings against Noticee no. 7 disposed of without any directions.
Provisions invoked
- s. 11
- s. 19
- s. 12A
- s. 77
- s. 27
- s. 372A
- s. 149(12)
Regulations
- Reg. 47
- Reg. 3(a)
- Reg. 8(1)
- Reg. 57
- Reg. 60
- Reg. 55
- Reg. 57(1)
- Reg. 107
- Reg. 60(4)(a)
- Reg. 57(2)(a)
- Reg. 60(7)(a)
Parties
- Noticee no. 1 (Birla Pacific Medspa Ltd.)
- Noticee no. 2
- Noticee no. 3
- Noticee no. 4
- Noticee no. 5
- Noticee no. 6
- Noticee no. 7
- Noticee no. 8
- Noticee no. 9
- Noticee no. 10
- Noticee no. 11
- Noticee no. 12
Holding
The Noticees were held liable for misstatements in the Prospectus and diversion/misutilization of IPO proceeds, as BPML deployed IPO funds as inter-corporate deposits (ICDs) to group companies contrary to the 'interim use of funds' and 'Objects of the Issue' disclosed in the Prospectus. Market access restrictions were imposed on Noticees 1-6 and 8-11 for two years, on Noticee 12 for six months, and proceedings against Noticee 7 were disposed of without directions.
Full text
Final order in the matter of Birla Pacific Medspa Ltd. Page 2 of 61 Noticees, under Sections 11(1), 11(4), 11A and 11B of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act, 1992”) and Regulation 107 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (hereinafter referred to as “ICDR Regulations, 2009”) for violation of Regulations 57(1), 60(4) (a) and 60 (7) (a) of ICDR Regulations, 2009 and Regulation 57 (2) (a) read with Clause 2 (XVI) (B) (2) of Part A of Schedule VIII of ICDR Regulations, 2009.
Final order in the matter of Birla Pacific Medspa Ltd. Page 3 of 61 d. The fund requirement for meeting the objects of the issue was disclosed as shown below:
Final order in the matter of Birla Pacific Medspa Ltd. Page 4 of 61 h. The Price-Volume data of the scrip on BSE for the period during and after the Investigation Period is given below:
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Source: SecMarx — sebi:WTM/AB/IVD/ID1/9413/2020-21. 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.