INSUBCONTINENT EXCLUSIVE:
SEBI has slapped a fine of over Rs 72 crore on Appealing Fabric Industries LimitedNew Delhi: Markets regulator Securities and Exchange Board
of India (SEBI) on Wednesday slapped a fine of over Rs 72 crore on Winsome Fabric Industries Limited, its directors and 2 other individuals
in a matter relating to issuance of worldwide depository receipts (GDR) by the firm.The directors dealing with the fine are Ashish Bagrodia,
Manish Bagrodia and Satish Girotra.Winsome issued 1.29 million GDRs totaling up to $9.99 million on March 31, 2011 and Pan Asia Advisors
Limited was the lead supervisor of the concern
Arun Panchariya was the handling director of Pan Asia Advisors.Investigation revealed that Vintage FZE was the sole customer of the GDR
Mukesh Chauradiya was Vintage's managing director and Panchariya was its 100 percent beneficiary.Vintage availed loan from EURAM Bank in
order to subscribe to the problem
For the loan, Winsome had actually pledged the GDR continues as collateral.Further, FII-sub-accounts connected to Panchariya transformed the
GDRs and Aspire Emerging Fund sold converted equity shares worth Rs 1.11 crore in the Indian securities market.In addition, the firm made
misleading business statements and likewise failed to notify the stock exchanges about the delisting of the GDRs from the Luxemburg Stock
Winsome triggered the financiers in the securities market in India to think that the full consideration for GDRs had been gotten by it which
was not true and therefore, induced the investors in India to deal in securities, and committed scams on the investors in India, SEBI
said.The directors also acted as a party to the fraudulent scheme of GDR issuance.The markets regulator has likewise disallowed Winsome, its
three directors, Vintage FZE, Arun Panchariya, Mukesh Chauradiya, Pan Asia Advisors and seven funds from the securities market for differing
time periods.Also, Aspire Emerging Fund has been directed to disgorge illegal gains of over Rs 1.11 crore made by way of sale of equity
shares, in addition to 12 per cent interest from the date of sale of equity shares till the payment of disgorgement amount.For markets norms
offenses, SEBI has levied Rs 4.4 crore fine on the firm, Rs 67 crore fine on Mr Panchariya, Rs 59 lakh fine on the 3 directors and Rs 67
lakh fine on Mukesh Chauradiya.
