sebi:WTM/MPB/ISD/26/2017
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Facts / Headnote
Representation of JMD Ventures Limited disposed of; actions in SEBI letter dated August 7, 2017 modified to revert trading to pre-August 7, 2017 status, direct Exchange to appoint independent forensic auditor, restrict promoters/directors to buy-only with no sale transfers, and continue other applicable restrictions until further orders, subject to 30-day reply/hearing failing which findings/directions stand automatically confirmed.
Provisions invoked
- s. 11
- s. 11(1)
- s. 19
- s. 131
Parties
- JMD Ventures Limited
Holding
SEBI disposed of JMD Ventures Limited's representation by modifying the August 7, 2017 measures to revert trading to its prior status, ordering an independent forensic audit for misrepresentation and misuse of books/funds, and continuing buy-only restrictions on promoters/directors pending final determination.
Full text
Order in the matter of JMD Ventures Limited Page 2 of 17 (b) Misusing the books of accounts/funds of the company including facilitation of accommodation entries to the detriment of minority shareholders and therefore reneging on the fiduciary responsibility cast on the board, controlling shareholders and key management person (KMP)
Order in the matter of JMD Ventures Limited Page 3 of 17 7. On August 09, 2017, SEBI further advised the Exchanges to submit a report after seeking auditor's certificate, from all such listed companies, providing the status of certain aspects of the company like company's compliance requirement with Companies Act, 1956 whether company is a going concern and its business model, status of compliance with listing requirements, etc.
Order in the matter of JMD Ventures Limited Page 4 of 17 j. That the Authorised Capital of Our Company is Rs. 150,000,000 and Paid up Share Capital is Rs 144,292,000. Also the net worth of company is Rs.380,628,576. The Company has a reserves of Rs. 236,550,926 in the F.Y. 2016-17. k. That the company has an annual turnover of Rs. 612,433,605 in year 2016-17; Rs 2,186,845,985 in the year 2015-16; Rs 5,032,895,041 in the year 2014-15 during the last three years. l. That the Company had a profit of Rs (1,620,267)in the year 2016-17; Rs 2,879,051 in the year 2015-16 ; Rs 2,879,051 in the year 2014-15 during last three years and have also paid tax of Rs 65,477 in the year 2016-17; Rs 1,345,605 in the year 2015-16;Rs 5,926,973 in the year 2014-15 m. That the company has complied with all the Listing Regulations requirements and all the annual filings at MCA. n. That SEBI is requested to direct BSE to revoke the directions and allow the trading of shares of the Company and revoke the ex-parte directions.
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Source: SecMarx — sebi:WTM/MPB/ISD/26/2017. 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.