The company had issued GDRs of USD 1.32 lakh (about Rs 96 crore) on March 29, 2011. The investigation found that Vintage FZE (now Alta Vista International FZE) was the only company to have been issued GDRs.
Market Regulator SEBI
Markets regulator SEBI has imposed an aggregate fine of Rs 12 crore on Winsome Yarns Ltd and its managing director for fraud in issuance of Global Depository Receipts (GDRs). This fine has been imposed on the investigation conducted during March – April 2011. In which violation of market rules was found in issuance of GDR. This has been said in the order issued by SEBI.
The company had issued GDRs of USD 1.32 lakh (about Rs 96 crore) on March 29, 2011. The investigation found that Vintage FZE (now Alta Vista International FZE) was the only company to have been issued GDRs. Vintage had taken a loan of $ 1.32 million from EURAM Bank to buy the GDR.
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It was found that Winsome had kept the amount received from GDR as a guarantee against the loan of Vintage FZE. Winsome had entered into an agreement with EURAM Bank for this and the agreement was signed by Manish Bagrodia, Managing Director, Winsome. The company could not give necessary information to the stock markets about this. The company could not even prepare its financial accounts as per the accounting standards.
Violation of market rules
In this entire process, SEBI imposed a fine of Rs 11 crore on Winsome Yarns for violating various market rules. According to the order passed by SEBI on Friday, a fine of Rs 1 crore was imposed on Bagrodia. As per the order passed by SEBI, the regulator has imposed a fine of Rs 40 lakh on four entities – PMC Fincorp, Raj Kumar Modi, Prabhat Management Services and RRP Management Services, for misleading presence in PMC shares and rigging its prices. Rajkumar Modi is the Managing Director of PMC. In fact, SEBI from time to time takes steps to expose frauds related to companies and markets and to bring transparency in the market. So that the money of investors does not drown in the market. In the last few years, many such cases have come to the fore in which the rules have been ignored.
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