sebi:WTM/MPB/ISD/92/2017
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Facts / Headnote
Interim directions issued modifying the actions envisaged in SEBI's letter dated August 07, 2017; trading reverted to pre-August 7, 2017 status; forensic audit ordered; promoters/directors restricted to buying only; representation disposed of.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 11(1)
- s. 11(2)
Regulations
- Reg. 30
Parties
- M/s Eskay K'n'it (India) Limited
Holding
SEBI found prima facie evidence of misrepresentation of financials/business, possible violation of LODR Regulations, and misuse of books of accounts/funds to the detriment of minority shareholders by EKIL, and issued interim directions reverting trading to its pre-August 7, 2017 status while ordering an independent forensic audit and restricting promoters/directors to buying securities only.
Full text
Interim Order in the matter of M/s Eskay K’n’it (India) Limited Page 2 of 22 (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 Eskay K’n’it (India) Limited Page 3 of 22 respect of all the listed securities as identified by MCA and communicated by SEBI, with effect from August 8, 2017.
Interim Order in the matter of M/s Eskay K’n’it (India) Limited Page 4 of 22 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/92/2017. 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.