sebi:WTM/MPB/ISD/23/2017
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Facts / Headnote
Interim directions issued modifying actions envisaged in SEBI's letter dated August 07, 2017; representation of the company dated August 22, 2017 disposed of; scrip reverted to T group of BSE with trade to trade settlement; forensic audit ordered; promoters/directors permitted only to buy securities.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 11(1)
Parties
- Edynamics Solutions Limited
Holding
SEBI's Whole Time Member passed an interim order modifying the actions of SEBI's letter dated August 7, 2017 against Edynamics Solutions Limited (ESL), reverting the scrip to T group of BSE with trade to trade settlement, directing appointment of an independent auditor for forensic audit, and restricting promoters/directors to only buying securities, pending audit/further enquiry.
Full text
Order in the matter of Edynamics Solutions Limited Page 2 of 12 4. SEBI was also of the view that investors should be alerted on the possible enforcement action by various authorities leading to potentially significant impact on the price of the stock.
Order in the matter of Edynamics Solutions Limited Page 3 of 12 c) Before placing our stocks in GSM Stage VI, the stock exchanges ought to have initiated the process of verification of our credentials, which is the mandate of para (c) of directions of SEBI dated August 7, 2017. Serious prejudice has been caused because of this to the Company and its Shareholders. Such a drastic action, without verification and cause, by SEBI, is not only unwarranted but also a misplaced action. d) The Company is having an eminent set of Independent Directors forming part of the Board of Directors. e) The Company came out with an Initial Public Offer in the year 2013, The Company presently has about 2000 equity shareholders. The Company was listed as a SMALL AND MEDIUM ENTERPRISE COMPANY at the SME Plateform of BSE Limited and migrated to BSE Main Board after due verification of BSE with all the Listing Compliances. f) The Company has been regularly filing the requisite returns/forms under the Companies Act, 2013 with the Ministry of Corporate Affairs. g) The Company has not been availing financial assistance from Banks/Financial Institutions/ NBFCs. h) The Company is a Tax Paying Company since last so many years; i) The Company has never received any Compliant from its Investors; j) There is no Case pending before any authority including Income tax Authorities; k) The Turnover of the Company has been significantly good in the past i.e. 265.86, 344.94 and 550.25 lakh in the financial years 201
Order in the matter of Edynamics Solutions Limited Page 4 of 12 “2. As the appellant has already made a representation to SEBI against the said ex-parte
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Source: SecMarx — sebi:WTM/MPB/ISD/23/2017. 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.