sebi:WTM/SKM/EFD1-DRAI/20/2019-20
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Facts / Headnote
Violations held established against the Company and its directors; restraint directions imposed including three years for Dr. Kannan Vishwanatth and one year each for Mr. Prabhat K. Goyal and Mr. Shashikant B. Shinde; copy of order forwarded to Official Liquidator.
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 3
- Reg. 57
- Reg. 57(1)
- Reg. 60(4)
- Reg. 200
- Reg. 301
- Reg. 301(2)(a)
- Reg. 2(x)
Parties
- Dr. Kannan Vishwanatth
- Mr. Prabhat K. Goyal
- Mr. Shashikant B. Shinde
Holding
The Company and its directors did not utilize the Rs. 117 crore IPO proceeds for the objects stated in the RHP and presented wrong, misleading and distorted disclosure concealing material information, in violation of Section 12A of SEBI Act, PFUTP Regulations and ICDR Regulations, warranting directions under Sections 11(1), 11(4) and 11B.
Full text
Order in the matter of Dr. Datsons Labs Ltd. (formerly known as Aanjaneya Lifecare Limited) Page 2 of 52 3. It was observed in the course of investigation that the Company came with Initial Public Offer (hereinafter referred to as “IPO”) of 50,00,000 equity shares of face value of Rs. 10 per share. It had filed the Draft Red Herring Prospectus dated September 13, 2010 and RHP (hereinafter referred to as “RHP/offer document”) dated April 28, 2011. The issue was opened for subscription on May 09, 2011 and closed on May 12, 2011. The shares were issued at the price of Rs. 234 per share and the Company raised a total of Rs. 117.00 Crore through the IPO. The final Prospectus was filed by the Company on May 18, 2011 and the Company got its shares listed on the Bombay Stock Exchange (hereinafter referred to as “BSE”) and National Stock Exchange (hereinafter referred to as “NSE”) on May 27, 2011. The Book Running Lead Managers (hereinafter referred to as “BRLM”) for the Issue were Anand Rathi Advisors Limited (hereinafter referred to as “Anand Rathi”) and IDBI Capital Market Services Limited (hereinafter referred to as “IDBI Caps”) and the Registrar to the Issue was Link Intime India Private Limited (hereinafter referred to as “Link Intime”).
Order in the matter of Dr. Datsons Labs Ltd. (formerly known as Aanjaneya Lifecare Limited) Page 3 of 52 and thereby fraudulently influencing the decision making of investors in the Securities Market. The Noticees have also been charged for diversion of IPO proceeds and for using the IPO proceeds for objects & purposes other than what have been stated in the RHP. The above acts of the Noticees have been alleged to be in violation of Section 12A (a), (b) and (c) of the SEBI Act, r/w Regulations 3 (b), (c), (d), 4(1),4 (2)(f) and (k) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and Regulations 57 (1), 57(2) (a) read with clause 2(VII)(G) of Schedule VIII and 60 (7) (a) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (hereinafter referred to as “ICDR Regulations”).
Order in the matter of Dr. Datsons Labs Ltd. (formerly known as Aanjaneya Lifecare Limited) Page 4 of 52 e) He was merely getting salary from the Company. He belongs to a middle class family and has not received any remuneration for two years, causing him huge hardships. He is aged 64 now and retired from work.
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Source: SecMarx — sebi:WTM/SKM/EFD1-DRAI/20/2019-20. 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.