sebi:WTM/AB/IVD/ID19/14495/2021-22
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Facts / Headnote
Violations of LODR Regulations established against K-Lifestyle and certain directors; penalties imposed; market access restrictions imposed on Noticee nos. 1, 2, 3, 5 and 7; allegations of fraud (Section 12A(a),(b),(c) and PFUTP Regulations) not made out; separate SCNs against statutory auditors (Noticee nos. 8 and 9) not sustained on the ground that SEBI jurisdiction over auditors requires connivance/collusion in concocting false accounts.
Provisions invoked
- s. 15A
- s. 19
- s. 11(1)
- s. 11B
- s. 12A
- s. 12
- s. 11(2)
- s. 11
- s. 15H
- s. 27
- s. 15J
- s. 15F
- s. 21
- s. 23E
- s. 23H
- s. 186
- s. 177
- s. 2(76)
- s. 176
- s. 227
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)
- Reg. 4(2)(f)
- Reg. 200
- Reg. 3(b)
- Reg. 2(1)
- Reg. 33
- Reg. 4
- Reg. 30(5)
- Reg. 30(4)
- Reg. 48
- Reg. 18(3)
- Reg. 4(1)(a)
- Reg. 33(2)(a)
- Reg. 25(5)
- Reg. 30(3)
Holding
K-Lifestyle and Industries Limited was held liable for violations of LODR Regulations (misrepresentation of financials, non-disclosure of related party transactions, non-disclosure of material information, improper use of funds) and for failure to furnish information, with penalties imposed on Noticee nos. 1, 2, 3, 5 and 7; however, the allegations of fraudulent and unfair trade practices under Section 12A(a),(b),(c) of the SEBI Act and PFUTP Regulations were not made out against any Noticee, and the SCNs against the statutory auditors (Noticee nos. 8 and 9) were not sustained.
Full text
Final Order in the matter of K-Lifestyle and Industries Limited Page 1 of 71 WTM/AB/IVD/ID19/14495/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER
Final Order in the matter of K-Lifestyle and Industries Limited Page 2 of 71 Noticees by the Securities and Exchange Board of India (hereinafter referred to as “SEBI”), details whereof are as given hereunder:
Final Order in the matter of K-Lifestyle and Industries Limited Page 3 of 71 (hereinafter referred to as “PFUTP Regulation, 2003”), Regulations 4(1)(a), (b), (c), (e), (g), (h), (i) and (j), 4(2) (f)(ii)(6), (7), (8), 4(2)(f)(iii)(3), (6) and(12), 30(3), 33(2)(a) and 48 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as “LODR Regulations”) read with Section 21 of SCRA, 1956. The SCN 1 further alleged that the company’s directors, (ii) Mr. Narayan Ghumatkar (noticee no. 2), (iii) Mr. Jaiprakash Mishra (noticee no. 3), (iv) Mr. P. S. Pritam (noticee no.4), (v) Mr. Pravin Kumar Parekh (noticee no. 5), (vi) Ms. Manasi Indrajit Wadkar (noticee no. 6) , and chief financial officer (vii) Mr. Rajendra Pathak (noticee no. 7) have violated Section 12A(a) (b) and (c) and Section 11(2)(i) and 11(2)(ia) of the SEBI Act, 1992 and Regulations 3(b), (c) and (d) and Regulations 4(1) and 4(2) (f) and (r) of the SEBI (PFUTP) Regulations, 2003, Regulations 4(1)(a),(b),(c),(e),(g),(h),(i) and (j), 4(2)(f)(ii) (6), (7), (8), 4(2)(f)(iii)(3),(6) and (12) of SEBI LODR Regulations read with Section 27 of SEBI Act, 1992, Regulation 30(3), Regulations 33(2)(a) and Regulation 48 of SEBI (LODR) Regulations read with Section 21 of SCRA, 1956.
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Source: SecMarx — sebi:WTM/AB/IVD/ID19/14495/2021-22. 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.