Aadhaar Ventures India Ltd (AVIL) and its directors were fined by SEBI on Monday for breaking the listing requirements and laws regarding insider trading. A total of 25 lakh rupees had been fined to AVIL.
Aadhaar Ventures India Ltd. (AVIL) and its directors, Jils Raichand Madan, Somabhai Sunderbhai Meena, and Jyoti Munver, were each given a fine of Rs 10 lakh by SEBI for disclosure violations. In addition, SEBI fined AVIL and Meena 5 lakh (to be paid jointly and severally) for breaking the rules on insider trading.
SEBI conducted an initial investigation into claims of price manipulation in the AVIL scrip and discovered that the company had made an announcement in August 2014 regarding the purchase of a business in Africa and the subsequent establishment of an overseas subsidiary in Singapore, both of which never happened.
The agency then carried out a separate inquiry for the months of July to September 2014.
According to the investigation, AVIL made corporate announcements on August 1 and August 14, 2014, regarding the purchase of a business in Africa and the establishment of a foreign subsidiary in Singapore, which were both considered to be “price sensitive information.”
However, despite numerous warnings provided to the company, the corporation failed to respond when BSE requested information from it.
According to AVIL’s annual reports, the company made announcements that did not come to pass but had an impact on the company’s performance. SEBI said in the order that the company is required to transmit such price-sensitive information to the stock exchange on a continuous and immediate basis.
But the business didn’t succeed in doing that.
As a result, AVIL, Madan, Meena, and Munver had violated disclosure lapses by failing to disclose the information to the stock exchange.
Additionally, Munver violated PIT (Prohibition of Insider Trading) regulations by failing to ensure that AVIL had complied with continuous disclosure obligations while serving as the company’s compliance officer.
The regulator added that the default was repeated in nature because AVIL had broken SEBI rules on two separate occasions.
As a result, it assessed AVIL a Rs 5 lakh fine.
The outcome of SEBI’s appeal, which is currently before the Supreme Court, might, however, affect the severity of this penalty. Listing conditions are covered by Section 23E of the Securities Contracts (Regulation) Act.
In the meantime, the regulator fined BRH Wealth Kreators Ltd (formerly known as BMA Wealth Creators Limited) Rs 10 lakh for breaking regulatory rules in a separate ruling.
The order was issued following a SEBI investigation into potential irregularities involving the issuance of securities by BRH Wealth Kreators Ltd.
