Market regulator Securities and Exchange Commission of India (SEBI) on Wednesday fined more than Rs 72 crore against Winsome Textile Industries Limited, its director and two other individuals involved in the company’s margin issuance. hybrid global depository (GDR).
The directors facing the fine are Ashish Bagrodia, Manish Bagrodia and Satish Girotra.
Winsome issued 1.29 million GDR up to $9.99 million on March 31, 2011 and Pan Asia Advisors Limited was the lead manager of the matter. Arun Panchariya is the managing director of Pan Asia Advisors.
Investigation revealed that Vintage FZE was the sole registrant of the GDR problem. Mukesh Chauradiya is the CEO of Vintage and Panchariya is a 100% beneficiary.
Old loan has been issued from EURAM Bank for issuance registration. For the loan, Winsome mortgaged the proceeds from the GDR.
Furthermore, the FII sub-accounts connected to Panchariya converted GDR and the Aspire Emerging Fund sold convertible equity shares worth Rs 1.11 crore on the Indian stock exchange.
In addition, the company issued misleading company notices and also failed to notify the stock exchanges of the delisting of GDR from the Luxemburg stock exchange.
“Winsome led stock market investors in India to believe that a full review of the GDR was untrue and, therefore, caused investors in India to trade securities and execute fraudulent practices against investors in India,” said SEBI.
The directors also acted as a party to the GDR issuance fraud scheme.
The market regulator has also banned Winsome, its three directors, Vintage FZE, Arun Panchariya, Mukesh Chauradiya, Pan Asia Advisors and seven funds from the stock market for different periods of time.
In addition, Aspire Emerging Fund was directed to illegally gain more than Rs 1.11 crore made by selling equity shares, together with 12% interest from the date of sale of equity shares. until the unemployment benefit is paid.
For market norm violations, SEBI fined the company Rs 4.4, a fine of Rs 67 against Mr. Panchariya, a fine of Rs 59 against three directors and a fine of Rs 67 against Mukesh Chauradiya.
https://www.ndtv.com/business/sebi-imposes-rs-72-cr-fine-on-winsome-textile-industries-directors-2-others-2653313 SEBI imposes fine of Rs 72 Crore on Winsome textile industries