Business: Sebi fines 11 companies Rs 66 lakh for breaking market rules

In addition, the firm failed to represent a true and fair view of the state of affairs of the company and further, it executed loan agreements with parties without paying any stamp duty, Sebi said. Sebi noted that Prateek Arora, Nimish Arora, Dilip Kumar Pipalwa, Richa Pipalwa and Shalabh Gaur who were the directors/CFO of the company at the relevant time, including independent directors are also liable for the violations committed by JCWL.

In a case involving falsification in the company’s financial facts, capital markets regulator Sebi fined ten companies a total of Rs 66 lakh on Wednesday, including Jalan Cement Works Ltd. Furthermore, the Securities and Exchange Board of India (Sebi) has restricted the entities from participating in the capital markets for a period of six to one year. The regulator found in its 69-page decision that Jalan Cement Works Ltd (JCWL), now known as Aashrit Capital Ltd, had neglected to report transactions and distorted financials of property sales and purchases. The financial statements for FY2015-16 and FY2016-17 had anomalies.

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Through such acts, these entities have violated LODR (Listing Obligations and Disclosure Requirements) rules. Individually, Sebi levied a fine of Rs 20 lakh on JCWL, Rs 10 lakh each on Prateek Arora, Nimish Arora and Dilip Kumar Pipalwa, Rs 4 lakh on Shalabh Gaur and Rs 2 lakh each on Roli Gupta, Heena Khurana, Satish Kumar Gupta, Richa Pipalwa, Suresh Kumar Moonka and Raj Kumar Agarwal.

Also, Sebi has prohibited eleven entities from accessing and dealing in the securities market for six months to one year. The order came after Sebi carried out an investigation in the matter after receiving a forensic audit report (FAR) in November 2018.

The independent forensic auditor was appointed by MSEI after Sebi, through an interim order in October 2017, directed the stock exchange to appoint the same for verifying misrepresentation including of financials and or business of JCWL and misuse of the funds/books of accounts of JCWL, if any. JCWL was in the list of 331 suspected shell companies released by the corporate affairs ministry in June 2017.

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