Farmax India Ltd.
Penalties and directions recorded
- Farmax to pursue measures to bring back USD 72.20 mn outstanding GDR proceeds
- Farmax and M. Srinivasa Reddy restrained from securities market for 5 years from 14 July 2020
- Sanjay Aggarwal and Nithish Bangera restrained for 2 years
- Prospect Capital and John Behar barred from securities-related services for 2 years
- Farmax to pursue measures to bring back USD 72.20 million; Reddy to ensure compliance
SAT-appeal
- Fraudulent GDR issue of USD 71.91 mn with pledged proceeds financing own subscription and misleading BSE announcementsFarmax to pursue measures to bring back USD 72.20 mn outstanding GDR proceeds · Farmax and M. Srinivasa Reddy restrained from securities market for 5 years from 14 July 2020
- Fraudulent GDR issue of USD 71.91 mn in two tranches with pre-pledge of proceeds to secure Vintage loan, non-disclosure of sole subscription, and conversion-sale in India.Farmax to pursue measures to bring back USD 72.20 million; Reddy to ensure compliance · Farmax restrained from securities market for 5 years from order dateAppeal: Appeal Nos. 214, 286, 351 of 2020, 527, 528, 632 of 2021 and 33, 34 of 2022 decided by SAT on 21.03.2022 (reserved 15.12.2021 and 03.02.2022)
- Fraudulent GDR scheme: USD 71.91 mn GDRs solely subscribed by Vintage via EURAM Bank loan secured by pledge of GDR proceeds, then cancelled and sold in India without consideration.Farmax to bring back outstanding USD 72.20 million; M. Srinivasa Reddy to ensure compliance · Farmax restrained from securities market for 5 years from order date
- Fraudulent GDR scheme: USD 71.91 mn GDRs solely subscribed by Vintage via EURAM loan secured by pledge of GDR proceeds, then converted to equity and sold in India without consideration.Farmax to pursue measures to bring back outstanding USD 72.20 million; Reddy to ensure compliance · Farmax restrained from securities market for 5 years from order dateAppeal: Appeal Nos. 214/2020, 286/2020, 351/2020, 527/2021, 528/2021, 632/2021, 33/2022, 34/2022 decided on 21 March 2022 by SAT
Source: SecMarx — Farmax India Ltd.. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (charges, outcomes, appeal chain) is cited to us.