extended the revisional proceedings to that issue also by issuing a letter subsequently.
Held: The issue as to whether increase due to the exchange fluctuation ... March, 2000. The GDR issue is nothing but an issue of shares made outside India. The proceeds of the GDR issue had to some extent
that the entire scheme of using the GDR
proceeds to fund a subscriber to the GDR issue was a
fraudulent scheme and violative of Section ... Penalty Orders
Sr. Name of the Date of GDR Subscriber Combined Date
No. GDR issuer Issue size Penalty of the
company (million Order
that the entire scheme of using the GDR proceeds to fund a
subscriber to the GDR issue was a fraudulent scheme and
violative of Section ... Penalty Orders
Sr. Name of the Date of GDR Subscriber Combined Date
No. GDR issuer Issue size Penalty of the
company (million Order
company that the entire issue was subscribed.
5. SEBI conducted an investigation pertaining to the issue of
GDR by the Company. Based on the investigation ... that
the entire scheme of using the GDR proceeds to fund a subscriber to
the GDR issue was a fraudulent scheme and violative of Section
GDR and in turn the GDR proceeds received by the appellant
11
Farmax was pledged for securing the loan advance to Vintage.
Thus GDR issue ... appellant
Farmax in issuing the GDRs. The appellant Prospect Capital
Ltd. was the Lead Manager to the said issue of GDR. The
appellant
Vintage') was the sole subscriber to the
GDR issue. Investigation further revealed that Vintage
was granted a loan by EURAM Bank ... flag when GDR proceeds
could not be utilised by the Company or the fact that
the partial restraint on the GDR issue were dependant
documents and process the necessary transactions in relation to
the GDR issue. The resolution further authorized Banco Efisa,
S.F.E., S.A. („Banco ... GDR of 4.65 million
was issued amounting to US $ 9.99 million. Further, Clifford
was the sole subscriber to the GDR issue on the basis
these appeals are being
decided together.
3. Investigation in the GDR issue of Beckons Industries
Ltd. (hereinafter referred to as 'the Company ... cause notice was issued
alleging that the sole subscriber to the GDR issue was
Vintage FZE (hereinafter referred to as 'Vintage
Bank. By this Pledge
Agreement JCL pledged the proceeds from the
GDR issue against the loan availed by Vintage.
d) Appellant No. 2, the Managing ... that loan
amount to fully subscribe the 5 million GDR
issue by JCL.
4. On June 30, 2010 JCL reported to the Bombay Stock
Exchange
nature of quasi capital and further the
entire proceeds of the GDR issue have been invested in the aforesaid
subsidiary and accordingly no addition ... Assessing Officer on account of disallowance
1/5th of GDR issue expenses claimed by the company as allowable
deduction
