sebi:WTM/ASB/CFID/CFID_4/24750/2022-23
Facts / Headnote
Interim directions issued requiring public disclosure of order, disclosure of updated status of undisclosed material events, and restraint on Noticees 2 to 5 from selling/disposing/diluting shareholding till further orders; prima facie findings to be treated as show cause notice with 21 days to reply and opportunity of personal hearing.
Provisions invoked
- s. 11
- s. 19
- s. 12A
- s. 11(2)
- s. 27
- s. 15H
- s. 15A
- s. 12
- s. 27(1)
- s. 133
- s. 31
- s. 134
- s. 2(76)
- s. 27(2)
Regulations relied on
- SEBI (LODR) Regulations, 2015
- SEBI (PFUTP) Regulations, 2003
- SEBI (PIT) Regulations, 2015
Parties
- Seya Industries Ltd.
- Ashok Ghanshyamdas Rajani
- Asit Kumar Bhowmik
- Sivaprasada Rao Buddi
Holding
SEBI prima facie found large-scale manipulation of books/financial statements through fictitious sales/purchases and siphoning via name-lenders/related parties, and issued interim disclosure and shareholding-restraint directions pending final adjudication, treating the order as a show cause notice.
Full text
___________________________________________________________________________ Interim Order cum Show Cause Notice in the matter of Seya Industries Ltd. Page 2 of 58 same, SEBI sent emails dated August 17, 2020 and August 21, 2020 advising the Company to co-operate with the NSE examination. However, the Company did not co-operate with NSE. The Company, vide email dated September 3, 2020 addressed to NSE, a copy of which was also marked to SEBI, forwarded a copy of the Order of the Hon’ble High Court of Bombay dated November 18, 2019 in the matter of arbitration petition filed by the Company against the Complainant and challenged the jurisdiction of SEBI and NSE with respect to the complaints filed by the Complainant. 3. NSE, vide email dated November 18, 2020, submitted its Examination Report to SEBI, wherein it concluded as under: “The Company has not responded appropriately to the queries raised by the Exchange as mentioned in the complaint. There have been multiple communications with the Company asking them to respond, however the Company has failed to do so and they have further stated that the present complaint on the scores platform is not maintainable. In view of the above, no
___________________________________________________________________________ Interim Order cum Show Cause Notice in the matter of Seya Industries Ltd. Page 3 of 58 1992 (hereinafter referred to as the “SEBI Act, 1992”), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations/SEBI (LODR) Regulations, 2015”) and SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (“PFUTP Regulations/ SEBI (PFUTP) Regulations, 2003”).
___________________________________________________________________________ Interim Order cum Show Cause Notice in the matter of Seya Industries Ltd. Page 4 of 58
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Source: SecMarx — sebi:WTM/ASB/CFID/CFID_4/24750/2022-23. 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.