sebi:WTM/SKM/EFD1-DRAI/02/2019-20
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violations established against Noticees 1, 2 and 3; charges of fraud against Noticees 4, 5 and 6 not established, but non-executive directors found to have failed in due diligence. Directions issued including recovery of USD 6.64 million by Noticee 1 from Noticee 2 and bringing back the money into ABL's bank account in India; existing holdings of Noticees 1, 2 and 3 frozen during restraint period.
Provisions invoked
- s. 19
- s. 12A
- s. 12
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Holding
ABL Biotechnologies Ltd, Clifford Capital Partners A.G.S.A., and Mr. K.O. Isaac (MD) were held to have violated Section 12A(a),(b),(c) of the SEBI Act read with Regulations 3(a),(b),(c),(d) and 4(1) of the PFUTP Regulations by concealing the pre-arranged GDR subscription scheme. The charges of fraud against non-executive directors (Noticees 4, 5 and 6) were not established, but they were found to have failed to exercise due diligence expected of directors of a listed company.
Full text
Order in the matter of M/s. ABL Biotechnologies Ltd Page 2 of 34 as “ABL/Company/Noticee no. 1”). The relevant period of investigation was from June 6, 2008 to July 5, 2008.
Order in the matter of M/s. ABL Biotechnologies Ltd Page 3 of 34 defaulted in its repayment of the loan to Banco Bank and as a result, the amount deposited as security by ABL with Banco Bank out of the GDR proceeds was utilized by the Bank towards satisfaction of the loan.
Order in the matter of M/s. ABL Biotechnologies Ltd Page 4 of 34 (Noticee no. 5), through his Authorized Representative and Mr. Raveendran Sappany (Noticee no. 6), personally attended the hearing on January 22, 2019. However, no one appeared on behalf of any of the other Noticees on the date of hearing nor any letter from these Noticees requesting for another date for personal hearing has been received till date. I note that Mr. Raveendran has submitted an additional written reply dated January 29, 2019. Thus, apart from Noticees no. 5 & 6, I find none of the other Noticees has availed the opportunity of personal hearing granted to them. Under these circumstances I deem it fit to examine and decide the matter on merit, based on the facts available from records, the SCN, the written replies and submissions made by the aforesaid two Noticees during the hearing.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/SKM/EFD1-DRAI/02/2019-20. 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.