DSP Merrill Lynch Limited

SAT-appeal

• As BRLMs to CARE IPO, failed to ensure true and adequate material disclosures in RHP on RBI/FEMA conditions including minimum capitalization norms for non-resident investors.
  AO had imposed Rs 1 crore penalty jointly and severally for ICDR/Merchant Banker violations, challenged in SAT appeal
  Appeal: Appeal No. 63 of 2015 against AO order dated 28.11.2014; reserved on 31.08.2016, decided on 30.09.2016
• Whether Rs.3 crore non-compete fee paid to promoter sellers must be added to Rs.140 open offer price under Reg 20(8) as device to reduce offer price.
  SEBI directions dated 11 September 2008 and 11 December 2008 to add non-compete fee with 10% interest set aside · Non-compete fee upheld as legitimate within Reg 20(8) limit, not to be added to offer price
• BRLMs to CARE IPO allegedly failed to ensure true and adequate material disclosures in DRHP/RHP on RBI/FEMA FDI conditions including minimum capitalization and NOC requirements.
  AO imposed Rs 1 crore penalty jointly and severally on six BRLMs - under challenge in SAT Appeal No. 63 of 2015
  Appeal: Appeal No. 63 of 2015 against AO order dated 28.11.2014; reserved on 31.08.2016, decided on 30.09.2016