Mohib Noman Khericha

SAT-appeal

• Lead manager officers failed to disclose Rs 7.28 cr inter-corporate loan by RDB Rasayans to group company in IPO offer documents; also charged for board resolution and machinery cost updates.
  Upheld AO finding on charge 1 - non-disclosure of inter-corporate loan · Set aside charge 2 on board resolution dated 12.09.2011 and charge 3 on machinery quotations
• Failure by merchant banker to exercise due diligence on RDB Rasayans IPO disclosures; non-disclosure in RHP/prospectus of Sept 12, 2011 board resolution for Rs 50 crore loan to group company RDB Realty.
  Set aside WTM order dated September 7, 2012 confirming ex-parte ad interim order dated December 28, 2011 against appellants · Vacated interim restraint debarring appellants from new capital market assignments pending investigation
• Prima facie lack of due diligence by appellants as merchant banker in handling IPO of RDB Rasayans Limited.
  Board to complete investigation qua appellants within two weeks from 29 August 2012 · If Board fails to pass appropriate order in time, ex-parte ad-interim order against appellants stands vacated
  Appeal: Appeal No. 174 of 2012 disposed of on 29.08.2012 with direction to SEBI to complete investigation within two weeks