sebi:WTM/ASB/IVD/ID4/19737/2022-23
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Facts / Headnote
Noticees found liable; restrained from accessing the securities market for 4 years, with credit for period already debarred under the September 29, 2021 order.
Provisions invoked
- s. 12A
- s. 376
- s. 135
Regulations
- Reg. 3
- Reg. 4(2)
- Reg. 3(a)
Parties
- Akkash Patni (Noticee No. 2)
- Vimal Kumar Patni (Noticee No. 3)
- Vikash Patni (Noticee No. 4)
Holding
The three director-Noticees (Akkash Patni, Vimal Kumar Patni, Vikash Patni) of Vikash Metal & Power Ltd. were held liable as parties to a fraudulent GDR scheme in which GDRs worth USD 11.99 million were issued to Vintage FZE without adequate consideration, and were debarred from the securities market for 4 years.
Full text
Order in the Matter of GDR issue of Vikash Metal & Power Limited. Page 1 of 32 WTM/ASB/IVD/ID4/19737/2022-23 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA
Order in the Matter of GDR issue of Vikash Metal & Power Limited. Page 2 of 32 Noticees, and remitted the matter to WTM, SEBI. The Hon’ble SAT further directed the present Noticees to appear before the WTM on February 18, 2022, on which date the Show-cause Notice would be served on the Noticees, and thereafter the WTM was to proceed in the matter in accordance with law. 1.3. Before continuing further, it would be of relevance to narrate briefly the events in the matter prior to the Hon’ble SAT’s Order of February 01, 2022 : Table- 1 Sl. No Event Date a. Original Show-cause Notice in the present matter issued to thirteen (13) Noticees including Akkash Patni, Vimal Kumar Patni and Vikash Patni (“SCN”). February 01, 2018 b. Supplementary Show-cause Notice was issued to Noticee No. 1 and a common Supplementary Show- cause Notice was issued to Noticee Nos. 5, 6, 9 and 10 June 18, 2018 c. Inspection of documents was provided to the Noticee who had requested for the same. April 17, 2018 d. Personal hearings were granted to the Noticees who had requested to avail an opportunity of personal hearing. October 20, 2020 and July 01, 2020. e. Order in the matter of GDR issue of Vikash Metal and Power Limited (“Company/ VMPL”) passed by SEBI in respect of all the thirteen (13) Noticees. September 29, 2021
Order in the Matter of GDR issue of Vikash Metal & Power Limited. Page 3 of 32 2. The Show-cause Notice 2.1. Pursuant to the directions contained in the Hon’ble SAT’s Order of February 01, 2022 , the present Noticees by way of letters dated February 10, 2022 were informed to be present on February 18, 2022 at the SEBI Head Office in Mumbai to collect the SCN. Further to the said intimation, Akkash Patni received the SCN on behalf of all three of the present Noticees, namely, 1) Akkash Patni, 2) Vimal Kumar Patni and 3) Vikash Patni. So, in compliance of the Hon’ble SAT’s Order of February 01, 2022, the SCN was served on the present Noticees on February 18, 2022. 2.2. I note that the SCN arraigned the following entities, namely, 1. Vikash Metal & Power Ltd.; 2. Akkash Patni; 3.Vimal Kumar Patni; 4.Vikash Patni; 5.Arun Panchariya; 6.Vintage FZE ; 7.Mukesh Chauradiya; 8. Pan Asia Advisors Ltd.; 9. India Focus Cardinal Fund;
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Source: SecMarx — sebi:WTM/ASB/IVD/ID4/19737/2022-23. 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.