sebi:WTM/AB/IVD/ID19/16060/2022-23
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Facts / Headnote
Penalties imposed on Noticees 1-4; violations of PFUTP Regulations and Section 12A not made out; Noticee 7 found not to be an Independent Director.
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 11(1)
- s. 11B
- s. 12A
- s. 11(2)
- s. 11
- s. 15H
- s. 27
- s. 15J
- s. 15F
- s. 21
- s. 23E
- s. 23H
- s. 177
- s. 176
- s. 227
- s. 12A(1)
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)(f)
- Reg. 3(b)
- Reg. 33
- Reg. 4
- Reg. 4(1)(a)
- Reg. 21
- Reg. 6(1)
- Reg. 48
- Reg. 18(3)
- Reg. 17(8)
- Reg. 33(2)(a)
- Reg. 25(5)
- Reg. 46(1)
- Reg. 15(2)
- Reg. 44(3)
- Reg. 4(2)(c)
- Reg. 17(1)
- Reg. 46(2)(k)
Holding
The Company (DIDL) and its directors (Noticees 2-6) were held liable for violations of LODR Regulations, 2015 and Section 21 of SCRA, 1956, and penalties were imposed under Sections 15HB and 15A(a) of the SEBI Act, 1992. Allegations of fraudulent and unfair trade practices under Section 12A and PFUTP Regulations, 2003 were not made out, and Noticee 7 was found not to have been an Independent Director of DIDL.
Full text
Final Order in the matter of Dalmia Industrial Development Limited Page 1 of 51 WTM/AB/IVD/ID19/16060/2022-23 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER
Final Order in the matter of Dalmia Industrial Development Limited Page 2 of 51 Sections 23E and Section 23H of SCRA, 1956 should not be issued against them. Second show cause notice (hereinafter referred to as “SCN II”) was issued to Noticee no. 8 calling upon it to show cause as to why suitable directions as deemed fit under Sections 11, 11B and 11D of SEBI Act, 1992 should not be issued against it. SCN I alleges that Dalmia Industrial Development Limited (hereinafter referred to as “Noticee no.1”/“DIDL”/”Company”) has violated Section 12A(a),(b) and (c) and Section 11(2)(i) and 11(2)(ia) of the SEBI Act, 1992 and Regulation 3(b), (c) and (d) and Regulation 4(1) and 4(2) (f) and (r) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulation, 2003”), Regulation 4(1)(a),(b),(c),(g), 4(2)(f)(ii)(6)&(7), 4(2)(f)(iii)(3),(6) and (12), Regulation 6(1), Regulation 17(1), Regulation 21, Regulation 44(3), Regulation 46(1) & (2) (k), Regulation 17(8) read with Part B of Schedule II, Regulation 33(2)(a) and Regulation 48 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as “LODR Regulations, 2015”) read with Section 21 of SCRA, 1956. SCN I further alleges that the Company’s directors, Mr. Vikash Chowdhary (Noticee no. 2), Mr. Raj Mohta (Noticee no. 3), Mr. Vineet Chowdhary (Noticee no.4), (v) Alok Agarwal (Noticee no. 5), Mr. Shailend
Final Order in the matter of Dalmia Industrial Development Limited Page 3 of 51 2.1. SEBI passed an interim order on September 26, 2017 (hereinafter referred to as “interim order”) inter-alia directing the stock exchange to appoint an independent Forensic Auditor to, inter alia, further verify:
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Source: SecMarx — sebi:WTM/AB/IVD/ID19/16060/2022-23. 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.