sebi:WTM/SKM/EFD1-DRAI/04/2019-20
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Facts / Headnote
Violations established against Noticee No.1 and Noticees Nos.2 to 6; directions under Sections 11, 11B and 11(4) of the SEBI Act issued with specified restraint periods, to come into force with immediate effect and to be forwarded to stock exchanges, depositories and registrar and transfer agents for compliance.
Provisions invoked
- s. 19
- s. 12A
- s. 372
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Parties
- M/s. G V Films Ltd.
- Mr. Mahadevan Ganesh
- Mr. A. Venkatramani
- Mr. P. Raghuraman
- Mr. R. Gopalan
- Mr. V. Subramonian
Holding
Noticee No.1 violated Section 12A(a), (b), (c) of the SEBI Act read with Regulations 3(a), (b), (c), (d) and 4(1), 4(2)(f), (k), (r) of the PFUTP Regulations and Noticees Nos.2 to 6 violated Section 12A(a), (b), (c) read with Regulations 3(a), (b), (c), (d) and 4(1) by devising, facilitating and concealing a pre-arranged scheme where the entire GDR proceeds were pledged as security for the loan taken by the sole subscriber Whiteview to subscribe the GDRs.
Full text
Order in the matter of M/s. G V Films Ltd. Page 2 of 32 Table no. 1 GDR issue date No. of GDR Issued (mn.) Capital raised (US$mn.) Price per GDR (US$) Underl ying shares per GDR Local custodian No. of equity shares underlying GDRs Global Deposit ory Bank Lead Manager Bank where GDR proceeds deposited GDRs listed on April 27, 2007 6.4 40.00 0.625 25 ICICI Bank Ltd., Mumbai
Order in the matter of M/s. G V Films Ltd. Page 3 of 32 SHOW CAUSE NOTICE, REPLY AND HEARING 6. Under the aforesaid facts and circumstances, a Show Cause Notice (hereinafter referred to as “SCN”) dated August 10, 2017 was issued to all the Noticees, calling upon them to show cause as to why suitable directions shall not be issued against them under Sections 11, 11B and 11(4) of the SEBI Act. Noticees no. 1 to 5 have submitted separate letters, each dated August 30/31, 2017 seeking copies of documents relied upon by SEBI in the present proceedings. Noticee no. 6, Mr. V. Subramonian has submitted a written reply to the SCN vide letter dated August 30, 2017. I note from the records that SEBI has provided the copies of relevant documents relied upon in the SCNs to all the Noticees vide letter dated September 28, 2017. I further note that Noticees no. 1 to 5 have subsequently submitted their respective written replies, each dated March 6, 2018. Further, Noticee no. 6 had requested for inspection of relevant documents which was granted to him on November 30, 2018. Replies submitted by the Noticees were considered, and in the interest of principles of natural justice, Noticees have been subsequently provided with an opportunity of personal hearing on December 5,
Order in the matter of M/s. G V Films Ltd. Page 4 of 32 available on record, I find that the pertinent issues that require consideration in this matter are as under: (i) Whether the Company i.e. Noticee no. 1 has violated Section 12A(a), (b), (c) of the SEBI Act read with Regulations 3 (a), (b), (c), (d) and 4(1), 4(2) (f), (k), (r) of PFUTP Regulations? (ii) Whether the Noticees no. 2 to 6 have violated Section 12A(a), (b), (c) of the SEBI Act read with Regulations 3 (a), (b), (c), (d) and 4(1) of PFUTP Regulations?
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Source: SecMarx — sebi:WTM/SKM/EFD1-DRAI/04/2019-20. 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.