sebi:WTM/MPB/ISD/41/2017
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Facts / Headnote
Interim directions issued modifying the actions envisaged in SEBI's letter dated August 7, 2017: trading reverted to pre-August 7, 2017 status, independent forensic audit to be appointed by exchange, promoters/directors permitted only to buy securities, and existing restrictions under para 1(d) of the August 7, 2017 letter to continue. Representation disposed of.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 11(1)
- s. 45I
- s. 186
Parties
- M/s Dalmia Industrial Development Limited
Holding
SEBI found prima facie evidence of misrepresentation of the company's business/financials and suspicion of misuse of books of accounts/funds including facilitation of accommodation entries, and directed an independent forensic audit while reverting trading in DIDL securities to the status prior to August 7, 2017, with restrictions on promoters/directors selling shares.
Full text
Interim Order in the matter of M/s Dalmia Industrial Development 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)
Interim Order in the matter of M/s Dalmia Industrial Development 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, 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 Dalmia Industrial Development Limited Page 4 of 17 prejudice to the powers enumerated in section 11(1) of SEBI Act, SEBI has been granted power under section 11(4) and 11B of SEBI Act, 1992 to pass order in the interests of investors or securities market by taking any of the measures enumerated therein either pending investigation or inquiry or on completion of such investigation or inquiry. The inquiry under section 11B of the SEBI Act can also be caused to be made by SEBI.
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Source: SecMarx — sebi:WTM/MPB/ISD/41/2017. 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.