sebi:WTM/MPB/EFD-1-DRA-III/46/2018
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Facts / Headnote
CBL, Dr. A. N. Singh and Ms. Padma Singh restrained from buying, selling or dealing in securities for ten years; Dr. A. N. Singh and Ms. Padma Singh also restrained from associating with listed public companies, public companies raising money from the public, or SEBI-registered intermediaries for ten years; M/s Lakshmi Purna & Associates barred from certifying listed entities for five years. Directions against CBL under LODR Regulations and against Dr. A. N. Singh and Ms. Padma Singh under SEBI Act and PFUTP Regulations operate as interim directions for 30 days pending objections.
Provisions invoked
- s. 19
- s. 12A
- s. 10
- s. 27
- s. 24
- s. 68
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
- Reg. 200
- Reg. 3(c)
- Reg. 4(1)(a)
Parties
- Celestial Biolabs Limited (CBL)
- Dr. A. N. Singh
- Ms. Padma Singh
- M/s Lakshmi Purna & Associates
Holding
CBL misstated its accounts by overstating Bio-IT sales by ₹677 lakh in 2010-11 and ₹395 lakh in 2011-12 through fictitious transactions, and employed deceptive devices to defraud investors in violation of Section 12A(b) of the SEBI Act, PFUTP Regulations and LODR Regulations. Dr. A. N. Singh, Ms. Padma Singh (as controlling promoter-directors) and M/s Lakshmi Purna & Associates (as statutory auditor) were held liable for their respective roles in the scheme.
Full text
Order in the matter of Celestial Biolabs Limited Page 2 of 43 with an initial public offer in 2006 to raise funds amounting to approximate ` 30 crore. The company is listed on BSE and National Stock Exchange of India Ltd. 2. Dr. A. N. Singh is the Chairman and Managing Director of the company. He along with his family holds 37.31% as on March 31, 2017 which constitutes the Promoter Group of the company. The shareholding pattern of the company is as under: Category of shareholder Year ended March 31, 2012 Year ended March 31, 2011 No. of Shares % to total share holding No. of Shares % to total share holding Promoter Holding 55,57,178 38.06 55,72,178 44.93 Non-Promoter Holding 90,45,822 61.94 68,30,822 55.07 Total Share Holding 1,46,03,000 100.00 1,24,03,000 100.00
Order in the matter of Celestial Biolabs Limited Page 3 of 43 Commissionerate, it was observed that the books of accounts of the company was being tailored to a considerable extent and various fictitious transactions were recorded by the company in the name of Bio-IT Services to project a rosy picture of the company to its shareholders.
Order in the matter of Celestial Biolabs Limited Page 4 of 43 As per the annual reports, the company derives revenue from Formulations (which include herbal as well as allopathic formulations) and Bio-IT services. The sales of the company for the years 2010-11 and 2011-12 is as under:
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-III/46/2018. 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.