sebi:WTM/AB/IVD/ID19/17487/2022-23

SEBI · SEBI · 2020-02-14 · 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

Violations of LODR Regulations, 2015 found against Noticees 1-7; penalties imposed under Section 15HB of SEBI Act, 1992 and Section 23H of SCRA, 1956; allegations under PFUTP Regulations, 2003 and Section 12A of SEBI Act not made out.

Provisions invoked

Regulations

Parties

Holding

TTL and its directors/CFO were found to have violated multiple provisions of LODR Regulations, 2015 (including Regulations 4(2)(f), 6, 17(8), 33(2)(a), 34(1), 46(2)(k), and 48), with penalties of Rs. 20 lakhs on TTL, Rs. 10 lakhs on Mr. Vikrant Kayan, and Rs. 2 lakhs each on the other directors and CFO. Allegations of fraudulent and unfair trade practices under PFUTP Regulations, 2003 and Section 12A of SEBI Act were not made out.

Full text

Final Order in the matter of Trinity Tradelink Limited. Page 1 of 49 WTM/AB/IVD/ID19/17487/2022-23 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER

Final Order in the matter of Trinity Tradelink Limited. Page 2 of 49 Exchange Board of India (hereinafter referred to as “SEBI”). The SCN was issued to the Noticees asking them to show cause as to why suitable directions be issued and/or penalty be not imposed, as deemed fit under Sections 11(1), 11(4), 11(4A), 11A and 11B(1), 11B(2) read with Sections 15A(a), 15HA and 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act, 1992”), Sections 12A(1) and (2) read with Sections 23E and 23H of Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCRA, 1956”) against them. The SCN, inter alia, alleged that Trinity Tradelink Limited (hereinafter also referred to as “TTL” / “the Company”) had failed to present true and fair financial statements and had executed transactions which are non-genuine in nature tantamounting to misrepresentation of the accounts/ financials statement and misuse of account/ funds of the Company. It was further alleged that TTL had misused funds/ misrepresented books of accounts which are detrimental to the interests of genuine investors and are fraudulent in nature. It was also alleged that the directors and the Chief Financial Officer (hereinafter referred to as “CFO”) (i.e. Noticee nos. 2 to 7) of Noticee no. 1 had failed to exercise duty of care, by misrepresenting the financials/misusing the funds. It was observed that the directors and the CFO of Noticee no. 1 had failed to discharge their

Final Order in the matter of Trinity Tradelink Limited. Page 3 of 49 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)(1),(6) & (7), 4(2)(f)(iii)(3),(6) & (12), Regulation 6, Regulation 34(1), Regulation 46(2)(k), Regulation 17(8) read with Part B of schedule II, Regulations 33(2)(a) and Regulation 48 of SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015 (hereinafter referred to as “LODR Regulations, 2015”) read with Section 21 of SCRA, 1956. The SCN further alleged that the directors of the Company i.e., Mr. Vikrant Kayan (Noticee no. 2), Ms. Girija Banerjee (Noticee no. 3), Mr. Vikash Dubey (Noticee no.4), Mr. Akhtar Khan (Noticee no. 5), Mr. Bhaskar Paul (Noticee no. 6), and the Chief Financial Officer Mr. Kashi Nath Ishar (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 PFUTP Regulations, 2003, Regulations 4(1)(a),(b),(c),(e),(g), 4(2)(f)(ii)(1),(6)&(7), 4(2)(f)(iii)(3),(6) and (12), Regulation 6, Regulation 34(1), Regulation 46(2)(k) of LODR Regulations, 2015 read with Section 27 of SEBI Act, 1992, Regulation 17(8) read with Part B of schedule II, Regulations 33(2)(a) and Regulation 48 of LODR Regulations, 2015 read with Section 21 of SCRA, 1956.

You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.

Free accounts include 10 searches/day with full order access.

Analyse this matter in Ontology · Plans

Source: SecMarx — sebi:WTM/AB/IVD/ID19/17487/2022-23. 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.