GDR manipulation: Sebi bars Syncom Healthcare, 6 individuals from markets for five years
Markets regulator Sebi has barred Syncom Healthcare, its six former board members for five years from capital markets in a matter related to manipulation of a global depository receipts (GDR).
The regulator after conducting a probe found that the firm issued 4.5 million GDRs worth USD 20.74 million on September 3, 2010, on the Luxembourg Stock Exchange.
Vintage FZE, a Dubai-based firm, now known as Alta Vista International FZE, was the only subscriber to the GDR and the subscription amount was paid by obtaining loan from European American Investment Bank (EURAM).
However, the loan paid by Vintage was secured by pledge agreement between Syncom and EURAM Bank, the regulator said.
The fraudulent arrangement of loan and pledge agreement, which resulted in facilitating the subscription of GDR issue of the company by only one subscriber, was not disclosed to the exchange by the company, the regulator said in an order dated January 15.
Moreover, the firm mislead the investors into believing that the GDR issue was successful, whereas there was only one subscriber, it added.
The six persons -- Ajay S Bankda, Jyoti Bankda, Jagadish Prasad Bagaria, Bharat Kumar Doshi, Govind Das Pasari and Avichal Kasliwal -- were members of the board of directors, who approved the resolution regarding GDR issue and thereby acted as parties to fraudulent arrangement of subscription of GDR, Sebi noted.
By indulging in such activities, the entities violated PFUTP (Prohibition of Fraudulent and Unfair Trading Practices) regulations, Securities and Exchange Board of India (Sebi) said.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Gold and Silver rate today (May 29, 2024): Precious metal futures trade in green; yellow metal above Rs 72,250, white metal above Rs 95,500
Gold and Silver rates today (May 27, 2024): MCX gold jumps after sharp losses last week, silver nears Rs 92,100/kg levels
Earthquake in Meghalaya : 4.0 magnitude quake jolts Meghalaya, tremors felt in Guwahati on Wednesday
Rs 5,000 and 10,000 monthly deposits give you Rs 3,56,830, and Rs 7,13,659 on maturity in this small savings scheme
Shark Tank India: This startup gets blank check offer as revenue soars 10 times in 15 months, resulted in clash between judges
Tata Steel final dividend: Steelmaker announces 360% dividend alongwith Q4FY24 earnings, check record and payment dates
Hindustan Unilever, Polycab India and 3 other stocks can offer up to 50% return in 1 year - Check targets by brokerage
Top 5 large and mid cap SIP mutual funds in 5 Years: Rs 20,000 SIP in top fund has given a total of Rs 28.22 lakh
09:40 PM IST