sebi:WTM/SR/EFD/60/09/2017
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Facts / Headnote
SCN disposed of against certain promoters without directions; prohibition on issuing equity shares for ten years imposed on Asahi and certain directors/promoters; SCN disposed of against certain promoters without further directions.
Provisions invoked
- s. 11
- s. 19
- s. 12A
- s. 12
- s. 27
- s. 11C(3)
- s. 11C(5)
- s. 77(2)
- s. 77(4)
Regulations
- Reg. 11
- Reg. 4(2)
- Reg. 4(2)(f)
- Reg. 3(c)
- Reg. 3(b)
- Reg. 3(d)
- Reg. 4(2)(r)
- Reg. 4(2)(k)
- Reg. 4(2)(c)
- Reg. 11(1)
Holding
SEBI found Asahi and Shri Laxminarayan Jainarayan Rathi liable for providing false information regarding GDR subscribers and for concealing material information from SEBI, and imposed a ten-year prohibition on issuing equity shares or convertible instruments on Asahi and certain directors/promoters, while disposing of the SCN against certain promoters without directions for lack of sufficient evidence of control.
Full text
Page 2 of 33 Show Cause Notice dated December 18, 2014 – 2.1 SEBI completed its investigation in the matter and based on the findings contained therein, a Show Cause Notice (“SCN”) dated December 18, 2014, was issued to the following entities, viz.
Page 3 of 33 Laxminarayan Jainarayan Rathi was also the authorised signatory for Asahi’s bank account with Euram. iv. The Pledge Agreement (signed between Asahi and Euram) was an integral part of another agreement viz. Loan Agreement dated April 22, 2009, signed between Vintage and Euram. These Agreements enabled Vintage to avail a loan of US $5.98 Million from Euram for subscribing to the GDR Issue of Asahi in April 2009.
Page 4 of 33 2.4 Accordingly, as per the SCN, the persons/entities named therein were prima facie alleged to have violated the following provisions of law –
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Source: SecMarx — sebi:WTM/SR/EFD/60/09/2017. 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.