sebi:WTM/AB/IVD/ID19/19360/2022-23

SEBI · SEBI · 2020-08-24 · Ananta Barua, Whole Time Member

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Facts / Headnote

Directions issued and penalties imposed on the Company, its directors, CFO, and statutory auditor for fraudulent and unfair trade practices, misrepresentation of financials, and LODR violations.

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. 177
• s. 134(5)
• s. 227
• s. 12A(1)

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 3(b)
• Reg. 4(2)(f)
• Reg. 4
• Reg. 4(1)(a)
• Reg. 33
• Reg. 48
• Reg. 18(3)
• Reg. 33(2)(a)
• Reg. 25(5)
• Reg. 4(1)(b)
• Reg. 33(5)

Parties

• M/s. Newever Trade Wings Limited
• Ms. Akash Kumar
• Mr. Vikrant Kayan
• Mr. Bhaskar Paul
• Mr. Vikash Dubey
• Ms. Girija Banerjee
• Mr. Debjit Banerjee
• Mr. Kousik Brahma
• M/s D K Chhajer & Co., Chartered Accountants

Holding

The Company, its directors, CFO, and statutory auditor were held liable for fraudulent and unfair trade practices, misrepresentation of financial statements, misuse of funds, and violations of LODR Regulations, 2015. Penalties were imposed under Section 15HB of SEBI Act, 1992 and Section 23H of SCRA, 1956, and the Noticees were restrained from accessing the securities market.

Full text

Final Order in the matter of M/s. Newever Trade Wings Limited Page 1 of 55 WTM/AB/IVD/ID19/19360/2022-23 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER

Final Order in the matter of M/s. Newever Trade Wings Limited Page 2 of 55 referred to as “SEBI”) asking them to show cause as to why suitable directions be not issued and/or penalty be not imposed, as deemed fit under Sections 11(1), 11(4), 11(4A), 11A, 11B(1), 11B(2) read with Sections 15 A(a), 15HA and 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act, 1992”), Section 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 SCN1, inter alia, alleged that Newever Trade Wings Limited (hereinafter also referred to as “NTWL” / “the Company”) , its directors and the Chief Financial Officer (hereinafter referred to as “CFO”) (Noticee nos. 2 to 8) of Noticee no. 1 had failed to present true and fair financial statements, executed transactions which are non-genuine in nature resulting in misrepresentation of the accounts/ financials statement and misuse of account/ funds of the Company and such acts were found to be fraudulent in nature as they induced the investors to trade in the securities of the Company and had the potential to mislead the investors. The second show cause notice (hereinafter referred to as “SCN2”) was issued to the Noticee no. 9 by SEBI asking it to show cause as to why suitable directions as deemed fit under Section 11, 11B and 11D of SEBI Act, 1992 should not be issued against it. The SCN 2, inter alia, alleged that

Final Order in the matter of M/s. Newever Trade Wings Limited Page 3 of 55 India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”), Regulation 4(1)(a),(b),(c),(e),(g),(h),(i), 4(2)(f)(ii)(6),(7), 4(2)(f)(iii)(3),(6) and (12), Regulation 33(2)(a) read with Regulation 33(5) 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. The SCN 1 further alleged that the Company’s directors, (i) Ms. Akash Kumar (Noticee no. 2), (ii) Mr. Vikrant Kayan (Noticee no. 3), (iii) Mr. Bhaskar Paul (Noticee no.4), (iv) Mr. Vikash Dubey (Noticee no. 5), (v) Ms. Girija Banerjee (Noticee no. 6) , (vi) Mr. Debjit Banerjee (Noticee no. 7) and (vii) Chief Financial Officer, Mr. Kousik Brahma (Noticee no. 8) 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, Regulation 4(1)(a),(b),(c),(e),(g),(h),(i), 4(2)(f)(ii)(6),(7), 4(2)(f)(iii)(3),(6) and (12) of LODR Regulations,2015 read with Section 27 of SEBI Act, 1992, Regulations 33(2)(a) read with Regulation 33(5) and Regulation 48 of LODR Regulations, 2015 read with Section 21 of SCRA, 1956. The SCN 2 alleged that Noticee no. 9 M/s D K Chhajer & Co., Chartered Accountant

Source: SecMarx — sebi:WTM/AB/IVD/ID19/19360/2022-23. 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.