Market regulator SEBI levied a total penalty of Rs 1.8 crore on Edynamics Solutions Ltd (EDSL). Four individuals held because they breaking the share market norms.
In September 2017, the regulator had issued an interim order against the company. It asked the Bombay Stock Exchange (BSE) to appoint an independent auditor to conduct a forensic audit of Edynamics for verification.
The forensic audit consists of its financials, and trace the end-use of funds raised by the company from the public.
Also, EDSL had misrepresented the book of accounts to the tune of Rs 37 crore, the regulator noted.
By making misrepresentations in its book of accounts, EDSL has indulged in a fraudulent act as its misrepresented books and accounts had the potential to induce the investors to trade in its scrip, it added.
It further said four individuals — Bharat Gupta, Vinod Kumar, Vikas Saini and Anita Gupta — who were directors of the company at the time of violation have failed to discharge their fiduciary responsibility.
They failed in their duty to exercise due care and diligence and allowed the company to fabricate the figures. They also made false disclosures in the form of misrepresenting the books of accounts of the company, Sebi pointed out.
Thus, by completely disobeying and disregarding the directions of Sebi, the entities failed to comply with these mandatory statutory obligations, it said.
Such non-compliance and contraventions are very serious. They should be dealt with sternly by imposing a monetary penalty, the order noted.
SEBI Warning
The company faced violants of Rs 1 Crore. The company even had to face serious allegations against it.
Besides, a fine of Rs 60 lakh has been levied on Edynamics Solutions.
Four individuals have faced penalty because it. SEBI imposed this fine after they committed fraud. SEBI later clarified and took stand against all frauds committed warning others too.
