New Delhi, Market regulator Sebi on Tuesday imposed a total fine of Rs 35 lakh on OP Jindal group company Hexa Tradex Ltd, its promoters and directors for violation of delisting norms and other disclosure norms.
The regulator imposed a fine of Rs 2-5 lakh on Hexa Tradex, its chairperson Raj Kamal Aggarwal, Ravinder Nath Leekha, Vinita Jha, Girish Sharma and Pravesh Srivastava. They are collectively called Noticias.
Siddeshwari Tradex Pvt Ltd, Inox Global Multiventures, Opelina Sustainable Services and JSL Ltd were the promoter entities of Hexa Tradex Ltd, which were also fined by the market regulator.
According to a complaint received by the Securities and Exchange Board of India (SEBI) in July 2022, the regulator conducted an examination regarding the delisting of BSE and NSE-listed company Hexa Tradex Ltd (HTL).Based on the complaints received, SEBI had initiated proceedings against the notice recipients to investigate and adjudicate on the alleged violation of the provisions of the delisting rules and other norms of SEBI.
"...The Noticee 2-5 had failed to show care/diligence/skill, nor had they performed their duties in a professional manner by passing the wrongful resolution of HTL and the related entities of the acquirer i.e. Prithviraj Jindal and the other promoter entities i.e. Jindal Saw Ltd. "JITF LNfralogistics and SigmaTech Inc are accused of failing to comply with securities laws and making appropriate recommendations to the board for accepting the delisting proposal," SEBI adjudicating officer Santosh Kumar Sharma said in the order.
Sharma said, "...the board members of Hexa Tradex Limited did not insist on rational recommendations."
Therefore, it has been established that as per the SEBI order, HTL, Raj Kamal Aggarwal, Leekha, Vineeta Jha and Girish Sharma have violated the delisting regulations LODR (Listing Obligations and Disclosure Requirements).SEBI also observed that HTL and its promoter entities were aware of the proceedings initiated against it through show cause notice dated February 01, 2022 for non-compliance with securities laws and yet they wrongly informed the stock exchanges. Made sure they comply with the rules.
Thus, the acquirer reportedly could not hide behind the certificate of the board of directors of Dwivedi & Associates as well as Noticee 1 (HTL) in the meeting held on March 21, 2022, as detailed public announcement (DPA) was issued. The public on behalf of the acquirers, the regulator said.
“...The acquirers are trying to relieve themselves of the responsibility of disclosing material information in the DPA as they were promoter group entities of Noticee 1 (HTL).
Sharma said, “Thus, it is clear that Noticee Recipients 9-12 (Siddeshwari Tradex, Inox Global Multiventures, Opelina Sustainable Services and JSL Limited) were not in compliance with securities laws with respect to their disclosures in the DPA.,
Additionally, SEBI said that Pravesh Srivastava was the Compliance Officer/Company Secretary, who was also responsible for ensuring compliance with the violations.
Hence, the market watchdog found that Srivastava has violated LODR rules.
The regulator imposed a fine of Rs 2-5 lakh on Hexa Tradex, its chairperson Raj Kamal Aggarwal, Ravinder Nath Leekha, Vinita Jha, Girish Sharma and Pravesh Srivastava. They are collectively called Noticias.
Siddeshwari Tradex Pvt Ltd, Inox Global Multiventures, Opelina Sustainable Services and JSL Ltd were the promoter entities of Hexa Tradex Ltd, which were also fined by the market regulator.
According to a complaint received by the Securities and Exchange Board of India (SEBI) in July 2022, the regulator conducted an examination regarding the delisting of BSE and NSE-listed company Hexa Tradex Ltd (HTL).Based on the complaints received, SEBI had initiated proceedings against the notice recipients to investigate and adjudicate on the alleged violation of the provisions of the delisting rules and other norms of SEBI.
"...The Noticee 2-5 had failed to show care/diligence/skill, nor had they performed their duties in a professional manner by passing the wrongful resolution of HTL and the related entities of the acquirer i.e. Prithviraj Jindal and the other promoter entities i.e. Jindal Saw Ltd. "JITF LNfralogistics and SigmaTech Inc are accused of failing to comply with securities laws and making appropriate recommendations to the board for accepting the delisting proposal," SEBI adjudicating officer Santosh Kumar Sharma said in the order.
Sharma said, "...the board members of Hexa Tradex Limited did not insist on rational recommendations."
Therefore, it has been established that as per the SEBI order, HTL, Raj Kamal Aggarwal, Leekha, Vineeta Jha and Girish Sharma have violated the delisting regulations LODR (Listing Obligations and Disclosure Requirements).SEBI also observed that HTL and its promoter entities were aware of the proceedings initiated against it through show cause notice dated February 01, 2022 for non-compliance with securities laws and yet they wrongly informed the stock exchanges. Made sure they comply with the rules.
Thus, the acquirer reportedly could not hide behind the certificate of the board of directors of Dwivedi & Associates as well as Noticee 1 (HTL) in the meeting held on March 21, 2022, as detailed public announcement (DPA) was issued. The public on behalf of the acquirers, the regulator said.
“...The acquirers are trying to relieve themselves of the responsibility of disclosing material information in the DPA as they were promoter group entities of Noticee 1 (HTL).
Sharma said, “Thus, it is clear that Noticee Recipients 9-12 (Siddeshwari Tradex, Inox Global Multiventures, Opelina Sustainable Services and JSL Limited) were not in compliance with securities laws with respect to their disclosures in the DPA.,
Additionally, SEBI said that Pravesh Srivastava was the Compliance Officer/Company Secretary, who was also responsible for ensuring compliance with the violations.
Hence, the market watchdog found that Srivastava has violated LODR rules.
