sebi:WTM/MPB/ISD/35/2017
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Facts / Headnote
Representation of M/s Indian Infotech & Software Limited disposed of; actions envisaged in SEBI's letter dated August 7, 2017 modified — trading reverted to pre-August 7, 2017 status, independent forensic auditor to be appointed by Exchange, promoters/directors permitted only to buy securities, shares held by promoters/directors not allowed to be transferred for sale.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 11(1)
Parties
- M/s Indian Infotech & Software Limited
Holding
SEBI found prima facie evidence of misrepresentation of business/financials and suspicion of misuse of funds/books of account by IISL, and modified the August 7, 2017 trading restrictions by reverting the scrip to its prior trading status while directing appointment of an independent forensic auditor to verify the alleged misrepresentation and misuse of funds.
Full text
Interim Order in the matter of M/s Indian Infotech & Software Limited Page 2 of 16 (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)
Interim Order in the matter of M/s Indian Infotech & Software Limited Page 3 of 16 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, whether company is a going concern and its business model, status of compliance with listing requirements, etc.
Interim Order in the matter of M/s Indian Infotech & Software Limited Page 4 of 16 permit the appellant to withdraw the appeal with liberty to pursue the representation pending before SEBI.
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Source: SecMarx — sebi:WTM/MPB/ISD/35/2017. 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.