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2016 (9) TMI 767 - AT - Companies LawGuilty of violating the ICDR Regulations and PFUTP Regulations - Held that:- Basic charge held against the appellants is that by suppressing material facts from the investors in the IPO, the appellants have violated Securities And Exchange Board Of India (Issue Of Capital And Disclosure Requirements) Regulations, 2009 (“ICDR Regulations” for short) and by misutilizing the IPO proceeds, the appellants have violated the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (“PFUTP” Regulations” for short). It is relevant to note that based on the aforesaid violations, the AO of SEBI by his order dated 06.08.2014 had inter alia imposed penalty of ₹ 2 crore on the directors of RDB. Challenging the said order passed by the AO, the directors of RDB had filed appeals before this Tribunal. In our order passed today in those appeals we have upheld the decision of the AO of SEBI that the directors or RDB are guilty of violating ICDR Regulations and PFUTP Regulations and accordingly upheld the penalty of ₹ 2 crore imposed on the appellants. However, going into the question as to whether the WTM of SEBI was justified in upholding the two additional charges would now be futile, because the appellants have already undergone the debarment imposed under the impugned order and as such the appeals have become infructuous. Accordingly, in view of our decision that the appellants are guilty of violating the ICDR Regulations and PFUTP Regulations and the appellants have already undergone the debarment imposed under the impugned order, without going into the question as to whether the WTM of SEBI was justified in upholding the two additional charges, we dispose of all these appeals as infructuous.
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