9911796707
TMI Blog2022 (7) TMI 1428X X X X Extracts X X X X X X X X Extracts X X X X ..... holders. Further, finding given is, that the violation of the LODR Regulations gave no disproportionate gain to anyone nor created any unfair advantage to the appellants nor any specific loss was caused to any investor. Thus, in the absence of any finding of any fraudulent activities or misappropriation of funds or diversion of fund, we are of the opinion that the directions of debarment and the penalty given for violation of the LODR Regulations appears to be harsh and excessive. In the instant case, the appellants were debarred from accessing the securities market for a period of one year w.e.f. July 08, 2021 this period of debarment has already been undergone by the appellants. Consequently, no further orders are required to be pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal is condoned. The application is allowed. Appeal No. 750 of 2021 2. The present appeal has been filed against the order dated July 08, 2021 passed by the Whole Time Member ( WTM for convenience) of the Securities and Exchange Board of India ( SEBI for convenience) restraining the appellants from accessing the securities market and further prohibiting them from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, for a period of one year. The appellants were further imposed with penalties of different amounts totaling Rs. 67 lakhs. 3. The appellant is a trading company and deals in investment in infrastructure development, investment i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isrepresented its financials and violated the accounting standards. The WTM also found that various provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( LODR Regulations for convenience) was not complied with during the three financial years and there were lapses on the part of the Company in not making the disclosures within the stipulated period. The WTM further found that non-furnishing of information to the Forensic Auditor was violative of Section 11(2)(i) of the SEBI Act. The WTM further found that there was no violation of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 ( PFUTP Regulations, 2003 for convenience) as there was no misap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disproportionate to the alleged violation apart from being harsh and excessive. 9. On the other hand, the learned senior counsel for the respondent contended that the violation was grave and, consequently, the directions and the penalties imposed by the WTM were just and proper. 10. Upon a perusal of the findings, we find that a clear finding has been given that there is no misappropriation of the funds of the Company nor there is any manipulation in the price of the scrip. Further, no fraud has been played by the Company and its Directors to its investors and shareholders. Further, finding given is, that the violation of the LODR Regulations gave no disproportionate gain to anyone nor created any unfair advantage to the appellants no ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
