Aplaya Creations Ltd fined by SEBI for misusing funds. Capital markets regulator SEBI imposed a total penalty of Rs 21 lakh on Aplaya Creations Limited and two individuals for misusing funds raised through preferential issuance of securities in 2013.
The watchdog imposed a fine of Rs 11 lakh on Aplaya Creations Ltd, and Rs 10 lakh on Aplaya Creations, Ramawtar Gupta and Pramod Kumar Gupta, payable jointly and severally.
Since, SEBI had carried out an investigation in the shares of Aplaya Creations Ltd for February to December 2013 period.
Investigation of Aplaya Creations Ltd Case
During the probe, it was found that Aplaya Creations Ltd had diverted funds raised through preferential issue and utilised it for making loans and advances.
Under the listing agreement, the entity failed to disclose the same. Hence, it violated the LODR obligations.
Ramawtar Gupta and Pramod Kumar Gupta appointed as the executive directors. Preferential allotment approved in the meeting.
Thus, they were responsible for the day to day functioning of the company, it added.
As per the objective of issue the fund utilization failed. It also showed report variation in the utilization of funds. Therefore, the officials violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, SEBI said.
Meanwhile, through three separate orders passed on Tuesday, the watchdog slapped a fine of Rs 5 lakh each on Gowdanakunta Shilpa, Mukesh Kankariya and Vinod Hari Mhatre for fraudulent trading activities in the scrip of Mahavir Advanced Remedies Ltd (MARL).
As per the orders, the individuals had sold MARL shares in small quantities. Hence, it lead to a price rise despite the availability of large buy orders in the system and had manipulated the scrip price and created a misleading appearance of trading by executing such trades.
By doing so, they violated the norms of prohibition of fraudulent and unfair trade practices, as per the regulator.
On Monday the regulator imposed a fine of Rs 5 lakh on one Pradeep Kumar Kayan for indulging in fraudulent trading in illiquid stock options segment on the BSE.
Final Word regrading Aplaya Creations Ltd
In a separate order, the watchdog slapped a fine of Rs 3 lakh on Anurodh Merchandise. Hence, it violated takeover norms with respect to acquisition of shares in Onesource Techmedia Ltd.
Besides, SEBI levied a fine of Rs 2 lakh on Arihant Superstructures Ltd (ASL). It created a separate order, for disclosure lapses.
Independent director made the transaction. Arihant failed to disclose it who was a specified person under ASL’s code of conduct.
