Sebi imposes Rs 72 cr fine on Winsome Textile Industries, directors, 2 others, Retail News, ET Retail

New Delhi: Marketplaces regulator Sebi on Wednesday slapped a good of about Rs 72 crore on Winsome Textile Industries Ltd, its administrators and two other persons in a subject pertaining to issuance of world wide depository receipts (GDR) by the business. The directors experiencing the great are Ashish Bagrodia, Manish Bagrodia and Satish Girotra.

Winsome issued 1.29 million GDRs amounting to USD 9.99 million on March 31, 2011, and Pan Asia Advisors Ltd was the lead manager of the issue. Arun Panchariya was the running director of Pan Asia Advisors.

Investigation revealed that Vintage FZE was the sole subscriber of the GDR problem. Mukesh Chauradiya was Vintage’s running director and Panchariya was its 100 for each cent beneficiary.

Classic availed financial loan from EURAM Lender in get to subscribe to the issue. For the personal loan, Winsome experienced pledged the GDR proceeds as collateral.

Even more, FII-sub-accounts connected to Panchariya transformed the GDRs and Aspire Emerging Fund offered transformed fairness shares value Rs 1.11 crore in the Indian securities current market.

In addition, the agency designed misleading company bulletins and also unsuccessful to advise the inventory exchanges about the delisting of the GDRs from the Luxemburg Inventory exchange.

“Winsome caused the buyers in the securities market in India to believe that that the whole thing to consider for GDRs had been been given by it which was not true and thus, induced the traders in India to offer in securities, and fully commited fraud on the traders in India,” Sebi explained.

The administrators also acted as a party to the fraudulent scheme of GDR issuance.

Sebi has also barred Winsome, its a few directors, Classic FZE, Arun Panchariya, Mukesh Chauradiya, Pan Asia Advisors and seven money from the securities sector for varying time periods.

Also, Aspire Rising Fund has been directed to disgorge unlawful gains of around Rs 1.11 crore designed by way of sale of fairness shares, alongside with 12 per cent fascination from the day of sale of fairness shares until the payment of disgorgement quantity.

For markets norms violations, Sebi has levied Rs 4.4 crore fantastic on the agency, Rs 67 crore fine on Panchariya, Rs 59 lakh fine on the three directors and Rs 67 lakh fine on Mukesh Chauradiya.