lead manager Pan Asia and
thereafter subscribing to the GDR through Vintage
as the sole subscriber and subsequent conversion of
the GDR into equity shares ... genuinely subscribed.
12. The AO further found that the GDR subscription was
structured in a manner whereby the noticee no. 9 controlled
subscriber, Vintage, acquired
company and every director of the company who is an officer in default are made jointly and severally liable to pay the principal amount ... default of compliance with the requirement of sub section (2A)
Sub section (3) makes it obligatory to keep all the amounts received from the subscribers
Bank agreed to give a loan to
Vintage for the purpose of subscribing to the GDR. The show
cause notice further alleged that the pledge ... sole subscriber was not intimated to the stock
exchange and to the Indian investors. Further, Vintage did not
repay the loan and defaulted
into believing that
there were five subscribers to the issue. Investigation found
that there was only one subscriber. No explanation has been
given ... disclose the fact that the subsisting pledge agreement
13
facilitated one subscriber to subscribe to the GDR issue. The
corporate announcement so made was misleading
fraud in the matter led to a single entity Vintage FZE
subscribing the full GDR issue of USD 13.24 million on the
basis ... subscriber,
who had taken them as loan from Euram Bank, and
the funds remained with Euram Bank itself. Vintage
FZE subsequently defaulted on the loan
misled SEBI into
believing that there were more subscribers to the issue and not
one subscriber.
17. We also held that Company ... disclose the fact that the subsisting
pledge agreement facilitated the subscribers to subscribe to
the GDR issue. The corporate announcement was misleading
and presented
sole subscriber was not intimated to the stock exchange and to the
Indian investors. Further, Clifford did not repay the loan and
defaulted ... issue was fully
subscribed was misleading as the investors were not informed that
the GDR was subscribed by only one entity and, therefore, the
scheme
subscribed to. Hiran had
issued 15,38,462 GDRs amounting to US$ 10 million
on 20th May, 2010.
3. The said issue was subscribed ... EURAM Bank for subscribing the GDRs
of Hiran. It was alleged that the GDR issue would not
5
have been subscribed had Hiran not given
Directors and connected entities to ensure
that the GDR issue was successfully subscribed to Hiran had
issued 15,38,462 GDRs amounting ... from EURAM
Bank for subscribing the GDRs of Hiran. It was alleged that
the GDR issue would not have been subscribed had Hiran not
given
appellant had subscribed to the IIFL Special Opportunities
Fund. The appellant paid two installment of Rs. 25 lakh each
but defaulted on the third installment
