sebi:WTM/AB/IVD/ID4/8241/2020-21
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Facts / Headnote
Directions issued against all Noticees including restraint from securities market access, debarment from rendering services, and joint and several disgorgement of illegal gains of Rs. 51,74,09,103.50 and Rs. 2,57,674.35 with 12% p.a. interest within 45 days.
Provisions invoked
- s. 19
- s. 12A
- s. 11C
- s. 376
- s. 65B
- s. 24(1)
Regulations
- Reg. 4
- Reg. 3
- Reg. 3(a)
Holding
Farmax India Ltd. and connected noticees were found to have violated Section 12A(a),(b),(c) of the SEBI Act read with Regulations 3 and 4 of the PFUTP Regulations by executing a fraudulent GDR issuance scheme in which GDR proceeds were pledged as security for a loan to the sole subscriber (Vintage), who then defaulted, causing losses to shareholders. Directions including market restraint, service debarment, and joint and several disgorgement were issued against the noticees.
Full text
Final Order in the matter of Farmax India Ltd. Page 2 of 81 a. Farmax India Ltd. (hereinafter also referred to as “FIL” or “Farmax”) has violated the provision of Section 12A(a), (b), (c) of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act, 1992”) read with Regulations 3(a),(b), (c), (d) and 4(1), 4(2)(f), (k), (r) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Final Order in the matter of Farmax India Ltd. Page 3 of 81 4. Vintage’s letter dated April 27, 2011 and February 23, 2012 also show that Mukesh Chauradiya was Authorized Signatory of Vintage
Final Order in the matter of Farmax India Ltd. Page 4 of 81 29. Copy of email dated February 03, 2010 from Mr. Nithish Bangera forwarding invoice of USD 25,000 received from Lead Manager to FIL
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Source: SecMarx — sebi:WTM/AB/IVD/ID4/8241/2020-21. 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.