The investigation interval was March-April 2011.
The agency had issued GDRs amounting to USD 13.24 million (round Rs 96 crore) on March 29, 2011.
It was famous that Vintage FZE, now generally known as Alta Vista International FZE, was the only real subscriber of GDR challenge. For this, Vintage had availed a mortgage of USD 13.24 million from EURAM Bank for fee of subscription quantity.
It was discovered that Winsome pledged the GDR proceeds as collateral towards the mortgage availed by Vintage FZE. Winsome had signed pledge settlement with EURAM Bank. The settlement was signed by managing director of Winsome, Manish Bagrodia.
In addition, the agency didn’t disclose requisite data to the inventory exchanges.
It additionally failed to organize its monetary statements in accordance with accounting requirements.
For violation of assorted market norms within the course of, Sebi levied a fine of Rs 11 crore on Winsome Yarns and Rs 1 crore on Bagrodia via an order handed on Friday.
According to an order handed on Monday, the regulator has imposed a fine of Rs 40 lakh on 4 entities–PMC Fincorp, Raj Kumar Modi, Prabhat Management Services and R R P Management Services– for his or her function in creating deceptive look of buying and selling in PMC’s scrip and manipulating the value.
The penalty needs to be paid collectively and severally by them. Raj Kumar Modi is PMC’s managing director.
They indulged in fraudulent and unfair commerce practices whereas dealing in securities of PMC.
The matter pertains to fund transfers made by PMC immediately or via Prabhat Management Services and R R P Management Services to six entities, who in flip transferred the funds to their respective brokers for settlement of their trades within the scrip of PMC.
As per a separate order, Capstocks & (*12*) (India) Pvt. Ltd is going through a fine of Rs 7 lakh for violating a number of markets norms and the regulator’s circulars and instructions.
“The observations as regards mis-utilization of clients’ funds and non-settlement of funds and securities of clients, discrepancies in client registration process (KYC and KRA process) and non-recording of client order as found in the case certainly deserve imposition of penalty,” Sebi mentioned.
Besides, via separate orders, Sebi levied fine of Rs 12 lakh on Swaran Financial Pvt Ltd, Rs 10.4 lakh on Shiva Commodities, Rs 14.5 lakh on Sarswati Sales Pvt Ltd and Rs 5 lakh on Shree Laxmi Iron and Steel Works for fraudulent commerce by creating synthetic quantity in buying and selling in illiquid inventory choices on the BSE.
They have been fined for violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices norms).
The orders observe inspection of the inventory choices phase of the BSE carried out between April 1, 2014 to September 30, 2015.