sebi:WTM/ASB/CFD/CFD-SEC-4/30901/2024-25
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Facts / Headnote
Noticee debarred from taking any new mandate in relation to business of issue management until further orders, pending adjudication; directed to show cause why further directions including suspension or cancellation of certificate of registration as merchant banker should not be issued.
Provisions invoked
- s. 19
- s. 15H
- s. 73
Regulations
- Reg. 7
- Reg. 6
- Reg. 13
- Reg. 3
- Reg. 8
- Reg. 27
- Reg. 28(2)
- Reg. 9A
- Reg. 9A(1)(e)
- Reg. 9A(1)(d)
- Reg. 13A
- Reg. 22B
Parties
- First Overseas Capital Limited
Holding
Pending adjudication, First Overseas Capital Limited is debarred from taking any new mandate in relation to issue management until further orders, and is called upon to show cause why suspension or cancellation and other directions under Sections 11, 11(4) and 11B should not follow.
Full text
In the matter of First Overseas Capital Limited Page 2 of 33 1992. The details of the findings of the inspection are provided in the following paragraphs.
In the matter of First Overseas Capital Limited Page 3 of 33 Report dated January 19, 2024, it was noted that the Statutory Auditor had provided a qualified opinion with respect to a transaction amounting to Rs. 3 Crore entered between the MB and one Mr. Rajesh Mewawalla by treating the same as a time barred unsecured and doubtful loan/advance made by the MB for which no provision was made.
In the matter of First Overseas Capital Limited Page 4 of 33 10. SEBI, vide email dated May 22, 2024 asked the Statutory Auditor, Mr. Ganesh Mehta (Membership No. 032939), to confirm whether the aforesaid letter dated October 16, 2023 was provided to him and whether the same was considered by him before signing the audit report of the MB on January 19, 2024. In response, vide letter dated May 23, 2024, the Statutory Auditor, inter-alia, submitted that – “We have not been provided with the confirmation letter dated 16.10.2023 during the course of our audit and thereafter by the time the accounts were signed, i.e., on 19.01.2024…”
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Source: SecMarx — sebi:WTM/ASB/CFD/CFD-SEC-4/30901/2024-25. 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.