Market regulator Securities and Exchange Board of India (SEBI) on Wednesday imposed a fine of more than Rs 72 crore on Winsome Textile Industries Limited, its directors and two other individuals in a case related to the company’s global certificate issuance (GDR) .
The drivers facing the fine are Ashish Bagrodia, Manish Bagrodia and Satish Girotra.
Winsome issued 1.29 million GDRs for $9.99 million on March 31, 2011, and Pan Asia Advisors Limited was the principal manager of the issue. Arun Panchariya was the general manager of Pan Asia Advisors.
Investigation revealed that Vintage FZE was the sole subscriber to the DDR issue. Mukesh Chauradiya was the general manager of Vintage and Panchariya was 100 percent the beneficiary.
Vintage used a loan from EURAM Bank to subscribe to the issue. Winsome had pledged the DDR proceeds for the loan.
Furthermore, FII sub-accounts associated with Panchariya converted the GDRs and Aspire Emerging Fund sold converted shares worth Rs 1.11 crore in the Indian securities market.
In addition, the company made misleading corporate announcements and failed to inform the exchanges of the delisting of the GDRs from the Luxembourg Stock Exchange.
“Winsome made the investors in the securities market in India believe that the full compensation for GDRs was received by her, which was not true, and led the investors in India to deal in securities, and committed fraud with the investors in India,” said SEB.
The directors also acted as parties to the fraudulent scheme of the issuance of the GDR.
The market regulator has also banned Winsome, its three directors, Vintage FZE, Arun Panchariya, Mukesh Chauradiya, Pan Asia Advisors and seven funds from the securities market for various time periods.
Also, the Aspire Emerging Fund has been instructed to recover illegal profits of more than Rs 1.11 crore made through the sale of shares along with 12 percent interest from the date of sale of shares until payment of the disgorgement amount. Pay.
For violations of the market standards, SEBI has imposed a fine of Rs 4.4 crore on the company, Rs 67 crore fine on Mr Panchariya, Rs 59 lakh fine on the three directors and Rs 67 lakh fine on Mukesh Chauradiya.