sebi:WTM/SM/MIRSD/MIRSD_DPIEA/21188/2022-23
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Facts / Headnote
Violation of Rule 8(3)(f) of SCRR held; strongly warned and advised to ensure strict compliance in future, no monetary penalty
Regulations
- Reg. 27
- Reg. 5(h)
Parties
- Inventure Growth and Securities Ltd.
Holding
Inventure Growth and Securities Ltd. violated Rule 8(3)(f) of SCRR by extending loans totalling INR 8,76,25,000 to three subsidiaries. The Whole Time Member strongly warned IGSL and advised strict future compliance with Rule 8(3)(f).
Full text
__________________________________________________________________________________ Order in the Enquiry Proceedings against Inventure Growth and Securities Ltd. Page 2 of 14
__________________________________________________________________________________ Order in the Enquiry Proceedings against Inventure Growth and Securities Ltd. Page 3 of 14 related to securities market and out of it only INR 4,04,218 was received as interest on the said temporary loans advanced to its subsidiaries. 5.2. The details of loans advanced to its subsidiaries as on March31, 2018, are as under: Table No. 2 Name of Group Company Amount of Loan (INR) Inventure Finance Private Limited 8,75,00,000 Inventure Wealth Management Limited 75,000 Inventure Merchant Banker Services Private Limited 50,000 Total 8,76,25,000
__________________________________________________________________________________ Order in the Enquiry Proceedings against Inventure Growth and Securities Ltd. Page 4 of 14 is applicable only on consumption basis. Therefore, the payment from an OD account against FD is actually a payment from its own funds and not from borrowed funds. 5.6. It is submitted that the networth of the Noticee was far in excess of the loans advanced by the Noticee to its subsidiaries and in no manner could have adversely impacted the financial strength of the trading member. The amount of loans advanced as compared to the networth of the Noticee were as under: Table No. 3 Year Net worth of the Noticee Amount of Overdraft Outstanding (INR in crore) Loan given to Subsidiaries (INR in crore) 2016-17 151.23 5.98 7.40 2017-18 152.42 1.38 8.76 2018-19 146.84 3.11 NIL
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Source: SecMarx — sebi:WTM/SM/MIRSD/MIRSD_DPIEA/21188/2022-23. 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.