sebi:WTM/AB/IVD/ID19/15232/2021-22
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Facts / Headnote
Partially upheld charges of misrepresentation of financials and non-furnishing of information; charges under Section 12A of SEBI Act and PFUTP Regulations not sustained; penalties imposed on Noticees 1 to 7; Noticee 8's charge discharged
Provisions invoked
- s. 11
- s. 15A
- s. 19
- s. 11(1)
- s. 11B
- s. 12A
- s. 11(2)
- s. 15H
- s. 27
- s. 15J
- s. 15F
- s. 21
- s. 23E
- s. 23H
- s. 56
- s. 227
- s. 12A(1)
- s. 2(57)
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)
- Reg. 4(2)(f)
- Reg. 3(b)
- Reg. 4
- Reg. 4(1)(a)
- Reg. 15(2)(a)
- Reg. 30(4)
- Reg. 48
- Reg. 18(3)
- Reg. 17(8)
- Reg. 33(2)(a)
- Reg. 25(5)
- Reg. 15(2)
- Reg. 46
- Reg. 34(2)(b)
- Reg. 33(2)(d)
- Reg. 46(2)(i)
- Reg. 46(2)(c)
Parties
- Hit Kit Global Solutions Limited (Noticee no. 1)
- Amit Khandelwal (Noticee no. 2)
- Arvind Sharma (Noticee no. 3)
- Pavan Kale (Noticee no. 4)
- Kiran Nagpal (Noticee no. 5)
- Kamal Agrawal (Noticee no. 6)
- Rajesh Mavani (Noticee no. 7)
- Noticee no. 8 (statutory auditor)
Holding
HKG was found to have misrepresented its financials through non-genuine advances, capital expenditure, and operating expenses, and to have failed to furnish information to the forensic auditor, in violation of LODR Regulations and Sections 11(2)(i) and 11(2)(ia) of the SEBI Act. Charges under Section 12A of the SEBI Act and PFUTP Regulations were not sustained, and penalties totaling Rs. 85 lakhs were imposed on Noticees 1 to 7.
Full text
Final Order in the matter of Hit Kit Global Solutions Limited and Ors. Page 1 of 55 WTM/AB/IVD/ID19/15232/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER
Final Order in the matter of Hit Kit Global Solutions Limited and Ors. Page 2 of 55 (i) Show Cause Notice No. SEBI/HO/IVD/ID19/OW/P/2020/0000013568/1 dated August 24, 2020 issued to Noticee nos. 1 to 7 (hereinafter referred to as “SCN”); (ii) Show Cause Notice No. SEBI/HO/IVD/ID19/OW/P/2020/0000013569/1 dated August 24, 2020 issued to Noticee no. 8 (hereinafter referred to as “SCN-II”); and
Final Order in the matter of Hit Kit Global Solutions Limited and Ors. Page 3 of 55 Part B of Schedule II, 30(4)(ii), 33(2)(a), 34(2)(b), 46(2)(k) and 48 of the LODR Regulations read with Section 27 of SEBI Act and Section 21 of SCRA.
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Source: SecMarx — sebi:WTM/AB/IVD/ID19/15232/2021-22. 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.