sebi:WTM/AB/IVD/ID19/14750/2021-22

SEBI · SEBI · 2020-02-12 · Ananta Barua, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

LLCL found in violation of Regulation 33(1)(c), 33(2)(a), 48, 4(1)(a),(b),(c),(e),(g), 4(2)(f)(ii)(6)&(7), 4(2)(f)(iii)(3),(6)&(12), 17(8) read with Part B of Schedule II of LODR Regulations and Section 21 of SCRA, 1956; allegations under Section 12A(a),(b),(c) of SEBI Act and PFUTP Regulations, 2003 not tenable; penalties under Section 15HB and Section 15A(a) of SEBI Act attracted; Section 15HA and Section 23E of SCRA not attracted.

Provisions invoked

• s. 11B
• s. 11
• s. 15A
• s. 19
• s. 11(1)
• s. 12A
• s. 11(2)
• s. 15H
• s. 27
• s. 73
• s. 15J
• s. 15F
• s. 21
• s. 23E
• s. 23H
• s. 133
• s. 134(5)
• s. 12A(1)

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 4(2)
• Reg. 4(2)(f)
• Reg. 3(b)
• Reg. 8(1)
• Reg. 4
• Reg. 4(1)(a)
• Reg. 33
• Reg. 48
• Reg. 17(8)
• Reg. 33(2)(a)
• Reg. 25(5)
• Reg. 33(1)(c)

Holding

LLCL was found in violation of Regulation 33(1)(c), 33(2)(a), 48, 4(1)(a),(b),(c),(e),(g), 4(2)(f)(ii)(6)&(7), 4(2)(f)(iii)(3),(6)&(12), 17(8) read with Part B of Schedule II of LODR Regulations and Section 21 of SCRA, 1956 for misrepresentation of financial statements for FY 2015-16, 2016-17 and 2017-18; however, allegations under Section 12A(a),(b),(c) of SEBI Act and PFUTP Regulations, 2003 were not tenable as no trading or order data was provided.

Full text

Final Order in the matter of Landmarc Leisure Corporation Ltd. Page 1 of 56 WTM/AB/IVD/ID19/14750/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER

Final Order in the matter of Landmarc Leisure Corporation Ltd. Page 2 of 56 1. The present order deals with show cause notice bearing no. SEBI/HO/IVD/ID19/VA/OW/P/2020/5635 dated February 12, 2020 (hereinafter referred to as “SCN”) issued by Securities and Exchange Board of India (hereinafter referred to as “SEBI”) to Noticee no. 1 to 11. The SCN calls upon Noticee no. 1 to 11 to show cause as to why suitable directions should not be issued and/or penalty not be imposed, as deemed fit under Sections 11(1), 11(4), 11(4A), 11A and 11B(1), 11B(2) read with Sections 11(2)(i), 11(2)(ia), 15A(a), 15HA and 15HB of SEBI Act, 1992 and Section 12A(1) and 12A(2) of Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCRA, 1956”), read with Sections 23E and 23H of SCRA,1956, against them for violations of Section 12A(a), (b) & (c) of the SEBI Act, 1992 and Regulations 3(b), (c) and (d), 4(1), 4(2) (f) & (r) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as "PFUTP Regulation, 2003"), Regulations 4(1) (a), (b), (c), (e), (g), 4(2)(f)(ii)(6) & (7), 4(2)(f)(iii)(3), (6) & (12), 17(8) read with Part B of Schedule II, 33(2)(a) and 48 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as “LODR Regulations”), and Section 21 of SCRA, 1956.

Final Order in the matter of Landmarc Leisure Corporation Ltd. Page 3 of 56 2.2. The forensic audit report (hereinafter referred to as ‘FAR’) was submitted to SEBI by the stock exchange and the findings of the FAR from the period April 01, 2015 till March 31, 2018 were examined.

Source: SecMarx — sebi:WTM/AB/IVD/ID19/14750/2021-22. 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.