The company is now known as
.
The firm’s director, Dinesh Bhanusali, has been fined for his role in executing the scheme of fraudulent issuance of GDR.
The firm had come up with its GDR issues on two different occasions — March 2007 and May 2009.
Pan Asia Advisors Ltd was the book running lead manager for both the GDR issues. Arun Panchariya was the founder, director as well as 100 per cent shareholder of Pan Asia.
The complete process of GDR issuances by KSS was devised and structured by Panchariya in connivance with KSS to the detriment of the Indian investors, wherein loans were arranged for the subscription of GDRs.
GDR issue was allotted to only one entity Vintage, in which Panchariya was 100 per cent shareholder and a managing director. Thereafter, using certain foreign institutional investors, GDRs were converted into underlying shares and sold to the Indian securities market with the help of certain domestic entities connected to Panchariya.
Sebi noted that Dinesh Bhanusali, being a director at the relevant time, is equally liable for the frauds carried out by KSS, in collusion with Panchariya, on the Indian investors.
Therefore, for violation of market norms, Sebi has slapped a fine of Rs 1 crore on Bhansusali.
In a separate order, Sebi levied a total fine of Rs 12 lakh on Todi Securities Pvt. Ltd.
Sebi noted that the firm had “indulged in executing self-trades to artificially raise the volume in USD-INR contracts during the inspection period to create misleading appearance of trading in the currency derivatives segmentat USE”.
The regulator added that the Noticee, being a registered stock broker/ registered intermediary while indulging into aforesaid misleading trades, also failed to exercise due skill, care and diligence “in the conduct of its business as a stock broker as mandated under the code of conduct under Stock Brokers Regulations”.
The Securities and Exchange Board of India (Sebi) had conducted inspection of books of accounts and other records of Todi Securities during April-October 2011.
In April 2015, Sebi had levied a total fine of Rs 1.1 crore on the stock broker but the Securities Appellate Tribunal (SAT) had set aside the regulator’s order and directed for passing fresh order on merits and in accordance with the law.
According to a separate order, five entities are facing a total penalty of Rs 20 lakh for fraudulent trading in the scrip of Mahadushi International Trade Ltd, currently known as Negotium International Trade Ltd.
The entities — Gajgamini Merchandise, Sidhiman Vyapaar, Vishnudham Marketing, Muchmore Vincom and Gajendra Kumar Tyagi — created misleading appearance of trading in the scrip of the company.
The fine amount has to be paid “jointly and severally”.
Besides, Diwakar Bhagwati is facing a fine of Rs 5 lakh for making delayed disclosures on two occasions to the company and stock exchanges with regard to change in shareholding in the firm.
