GDR Manipulation

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The Securities Appellate Tribunal has slashed the penalty imposed by Sebi on Jindal Cotex Ltd (JCL) to Rs 25 lakh from Rs 10.3 crore in a case related to manipulation in the issuance of global depository receipts. Also, the appellate tribunal reduced the fine on JCL's Managing Director Sandeep Jindal to Rs 10 lakh from Rs 20 lakh. However, it affirmed the penalty imposed on Rajinder Jindal and Yash Paul Jindal who was Whole Time Director and Chairman of JCL, respectively, saying the fines were neither arbitrary nor excessive. "In our opinion, the penalty imposed is "excessive" and disproportionate to the violation and is also discriminatory. "The company is a running concern. Penalising the firm with such a heavy penalty is in fact penalising the shareholders, which is not justifiable especially for a running company," the appellate tribunal said in its order dated February 23. The ruling came after JCL, Sandeep Jindal, Rajinder Jindal and Yash Paul Jindal challenged the order pa

Sebi on Tuesday levied fines totalling Rs 20 lakh on PVR Murthy in the manipulation of global depository receipts (GDR) of Birla Cotsyn (India) Ltd and Zenith Birla (India) Ltd (now known as Zenith Steel Pipes & Industries). In two separate orders, the regulator slapped a fine of Rs 10 lakh each on PVR Murthy. The order came after the Securities Appellate Tribunal (SAT) in its ruling on November 2022, set aside two different Sebi orders passed on May 2022 and June 2022, in the matter of Birla Cotsyn and Zenith Birla and remanded the matter back to the markets watchdog and pass a fresh one. The regulator conducted its investigations into the alleged irregularities in the GDR of Birla Cotsyn (India) Ltd (BCIL) and Zenith Birla (India) Ltd (ZBIL) during the period February-April 2010 and May-June 2010, respectively. The regulator found in its investigations that the GDR issue would not have been subscribed had ZBIL and BCIL not given any such security towards the loan taken by ...

It was observed that Commex had issued 19,06,790 GDRs raising USD 9.99 million in May 2009 and the entire GDR were subscribed by only one entity -- Vintage FZE

The directors facing the fine are Ashish Bagrodia, Manish Bagrodia and Satish Girotra

Pan Asia Advisors Ltd, a UK based entity, was the lead manager for the firm's GDR issue

Cracking the whip in a GDR manipulation case related to Zenith Birla (India) Ltd, Sebi on Tuesday barred six individuals and seven entities from the securities market for varying periods

Sebi has barred two entities and five individuals for indulging in fraudulent trading activities with respect to GDR issuance by Soma Textiles & Industries Ltd. Soma Textiles & Industries Ltd "is hereby restrained from accessing the securities market...directly or indirectly...for a period of 3 years from the date of this order," Sebi said in an order passed on Monday. Others facing the prohibition are -- SK Somany, AK Somany, P Bandopadhyay, Prafull Anubhai, Sunil Patel and Whiteview Trading Corporation. The ban has been imposed for a period ranging from 1-3 year. An investigation was conducted by Sebi with respect to the GDR (Global Depository Receipt) issuance by the company during October 1-31, 2006. The regulator in its investigation observed that Soma had issued GDRs amounting to USD 17.29 million. It was noted that the entire GDR proceeds were subscribed to only one entity -- Whiteview Trading Corporation (Whiteview). It was also observed that the subscription amount ...

Sebi noted that Reddy was part of the fraudulent scheme and arrangement of Farmax India in executing the scheme of financing its own GDR issue

Through two separate orders, Sebi noted that the firm issued 1.44 million GDRs amounting to USD 5 million in July 2008 and 2.49 million GDRs worth USD 10.54 million in June 2010

Markets regulator Sebi has barred four individuals in connection with manipulation in the issuance of global depository receipts by Birla Cotsyn (India) Ltd back in 2010

Markets regulator Sebi on Tuesday slapped a fine totalling Rs 20.65 crore on Aqua Logistics Ltd, its directors and three other individuals for manipulation in issuance of global depository receipts

The regulator has directed Farmax to continue to pursue the measures to bring back the outstanding amount of $72.20 million into its bank account in India, according to an order

The regulator has directed Farmax to continue to pursue the measures to bring back the outstanding amount of $72.20 million into its bank account in India

In a separate order passed on Thursday, Sebi levied a total penalty of Rs 10.25 crore on Beckons Industries Ltd in a matter related to manipulation in issuance of GDR.

The order follows a probe conducted by the regulator between August-September 2010.

Sebi has banned the officials from accessing securities market for varying periods between one year to three years.

During the probe, Sebi observed that the entire 1.51 million GDRs were subscribed by only one entity, Vintage FZE (now known as Alta Vista International FZE).

The regulator in a probe conducted between November-December 2010 noted that the firm had issued 1.12 million GDRs amounting to $10.38 million

According to Sebi, there are no adverse findings against the company's director Prashant Kumar Ghosh and promoters -- K Nirmala Rao and K Srinivas