Home Case Index All Cases SEBI SEBI + Board SEBI - 2019 (3) TMI Board This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 2040 - SECURITIES AND EXCHANGE BOARD OF INDIAFinancial mismanagement and diversion of funds in subsidiary for the benefit of promoters / group companies - Diversion of Funds through fixed deposits - HELD THAT:- A detailed investigation of the fund diversion in this case is necessary to find out the role of each entity in the alleged routing of funds. However, pending detailed investigation, a remedial action is required to be taken by way of an interim ex-parte order to protect the interests of shareholders of REL as funds to the tune of Rs. 2315.09 Crores (approx.) have moved out from RFL for the ultimate benefit of erstwhile promoters of REL. Direction by virtue of section 19 read with sections 11(1), 11(4)(d) and 11B of the SEBI Act - REL and RFL (i.e. Noticee nos. 1 & 2) shall initiate steps to recall all the loans, amounting to Rs.2315.09 Crores (approx.) extended, either directly or directly, to the Noticee nos. 3 to 25 along with due interest, within three months of the date of this order who inturn pending completion of the investigation and till further orders, not dispose of or alienate any of their assets or divert any funds, except for meeting expenses of day-to-day business operations, without the prior permission of SEBI.Noticee nos. 24 and 25 shall not associate themselves with the affairs of REL and RFL, in any manner whatsoever, till further directions The preliminary findings are made on the basis of the report of the forensic auditor. The Noticees may file their replies, if any, to SEBI within 21 days from the date of receipt of this order. In the event the Noticees intend to avail an opportunity of personal hearing, they may indicate the same in their replies.
|