sebi:WTM/MPB/ISD/94/2017
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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; independent forensic audit ordered; promoters/directors restricted from selling shares; representation disposed of.
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 19
- s. 11(1)
Regulations
- Reg. 30
Parties
- K Lifestyle & Industries Limited
Holding
SEBI found prima facie evidence of misrepresentation of financials and suspicion of misuse of books of accounts/funds by K Lifestyle & Industries Limited, modified the trading restrictions imposed by its letter dated August 07, 2017 to revert trading to the prior status, and directed appointment of an independent forensic auditor while restricting promoters and directors from selling shares.
Full text
Interim Order in the matter of K Lifestyle & Industries Limited Page 2 of 23 (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 K Lifestyle & Industries Limited Page 3 of 23 7. On August 09, 2017, SEBI further advised the Stock 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 K Lifestyle & Industries Limited Page 4 of 23 Hearing and Reply: 10. Pursuant to the decision of Hon’ble SAT that the communication of SEBI dated August 7, 2017 is in the nature of quasi-judicial order, SEBI vide communication dated October 06, 2017 granted an opportunity of hearing to KLIL on October 11, 2017. KLIL vide its email dated October 10, 2017 requested to reschedule the said hearing to October 12, 2017. The hearing was rescheduled to October 13, 2017 and the same was intimated to KLIL vide email dated October 11, 2017. On October 13, 2017, Mr. Ankit Lohia, Advocate, Ms. Rishika Harish, Advocate, Mr. Amit Bikram Dey, Advocate, Ms. Nirali Mehta, Company Secretary, and Mr. Pushpendra Pratap Singh, Authorized Representatives (hereinafter referred to as “ARs”) appeared for KLIL and made oral
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Source: SecMarx — sebi:WTM/MPB/ISD/94/2017. 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.