Market News In Hindi: SEBI imposes penalty of Rs 1.20 crore on two people for not complying with rules in GDRs of Bacons Industries | SEBI imposes penalty of Rs 1.20 crore on two people for not complying with rules in GDRs of Bacons Industries

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  • Last week too, SEBI imposed a penalty of Rs 25 crore on different people in the same case.
  • The GDR was approved by the board on 29 December 2009. Many cases were not reported

Daily newspaper

Jul 01, 2020, 02:35 PM IST

Mumbai. Capital market regulator SEBI has imposed a penalty of Rs 1.20 crore on two people in violation of the Global Depository Recept (GDR) rules on Bacons Industries. In this, Gurmeet Singh faces a fine of Rs 1 crore and IS Sukhija Rs 20 lakh. This penalty has to be paid within 45 days of receiving the notice. Last week itself, SEBI imposed a penalty of Rs 25 crore on different people in this case.

In 2010, Bacons brought GDR

According to the SEBI order, Bacon had issued the GDR from June 1, 2010 to June 30, 2010. SEBI found that the company did not disclose the credit agreement and the account charge agreement to the stock exchange in this case. Also, he had given misleading disclosure in the revelations he had made.

The company did not provide information about many cases

SEBI said that the investigation also found that the company did not even tell BSE that it had pledged an agreement with Aurum Bank and took a loan from Vintage FZE. SEBI found that it was a sensitive case involving price and it was necessary to disclose it. According to SEBI, Bacon had issued this GDR for a total of $ 10.54 million. It was 50.14 crores in Indian rupees. This GDR was listed on the Luxembourg Stock Exchange.

The board was approved on 29 December 2009

Accordingly, on 29 December 2009, the GDR approved the board meeting. There was a plan to raise Rs 50 crore from the GDR. The company had informed BSE about this. Gurmeet Singh, IS Sukhjia and Chandra Prakash etc. were at the board meeting of the company. But meanwhile it was revealed that the company signed a loan agreement with Vintage and Aurum Bank for a subscription of $ 10.54 million. The board of the company passed a resolution on 21 February 2008 in which it authorized Aurum Bank that it would use the money received from the GDR in lieu of the loan.

GDR converted into equity share

SEBI observed that GDR was later converted into equity and these equity shares were subsequently sold in the Indian equity market. The GDR was canceled from 17 September 2010 to 7 March 2011. The money received by selling the shares was transferred to several accounts. SEBI found that the GDR had no purpose and was simply a matter of diverting money from here to there.

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