sebi:WTM/PS/08/IVD1/OCT/2009
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Facts / Headnote
Warning issued to Premium Capital Market and Investments Ltd. to be careful and cautious in its dealings in the securities market in future and to comply with all relevant statutory provisions; future violations to be dealt with stringently.
Provisions invoked
- s. 11B
- s. 19
Regulations
- Reg. 13
- Reg. 20
Parties
- Premium Capital Market and Investments Ltd.
Holding
Premium Capital Market and Investments Ltd., as co-lead manager to the public issue of Consortex, violated Regulation 13 read with Clause 2 of Schedule III of the SEBI (Merchant Bankers) Regulations, 1992 and the SEBI Circular dated March 1, 1993 by failing to exercise due diligence regarding the foreign collaborator's investment and by failing to disclose the attachment of public issue proceeds. The noticee was warned to be careful and cautious in future dealings in the securities market.
Full text
Page 2 of 9 Manager, M/s. Keynote Corporate Services Ltd. (Keynote). Premium was responsible for the post issue activities at the time of public issue of Consortex. The investigations revealed that the amount to be invested in the company by the foreign collaborator before the public issue opened was never invested in accordance with Section L of the SEBI (Disclosure and Investor Protection) Guidelines, 1992. The same was invested by a domestic company, Volkskas Mercantile Ltd. (VML). An auditor’s certificate dated January 19, 1996 stated that the promoters had brought in their contribution. However, no independent verification was done by Premium.
Page 3 of 9 cause as to why a suitable direction debarring them from acting as an intermediary in the securities market for a particular period should not be passed.
Page 4 of 9 was never been informed to them by any Bank nor by the issuer company and same has been vacated in the month of March and Bank has released the fund to the company account. It could not be reported as the said court order was never served upon them nor any bank has forwarded any intimation to them in this regard.
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Source: SecMarx — sebi:WTM/PS/08/IVD1/OCT/2009. 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.