Sebi bars Rasoya Protein, 4 directors from capital mkts

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Sebi today barred Rasoya Protein, its four directors and five other entities from the capital markets for alleged fraudulent activities with respect to the company's Global Depository Receipts (GDR) issue.
The interim order has been passed after a preliminary probe by Sebi found the involvement of these entities in market manipulation.
Rasoya Protein and its four directors -- Prashant Duchakke, Anil Lonkar, Sameer Damle and Ajay K Singh -- were found to have colluded with Arun Panchariya, India Focus Cardinal Fund (owned by him), Pan Asia Advisors, Vintage FZE and its director Mukesh Chauradiya.
Pan Asia Advisors Ltd is now known as Global Finance and Capital Ltd while Vintage FZE has been renamed as Alta Vista International FZE.

The case relates to perpetrating "fraudulent plan" with regard to GDR subscription, creation of underlying shares using the facade of GDR issue and monetisation of those securities through share sale.
Besides, Sebi probe revealed that the entities were also trying to induce and allure Indian investors to deal in the company's shares.

GDR is a financial instrument used by companies to raise capital overseas.
The Securities Exchange Board of India (Sebi) has barred all the ten entities, including Rasoya Protein, from the capital market till further orders.
Further, Sebi noted that action could be initiated against other directors of the company.

The watchdog said the company and persons in charge of its affairs, created a facade of GDR issuance in collusion with other entities wherein GDRs and underlying equity shares were created without receipt of consideration by the firm.
"Such facade apparently enabled them to, at least partly, induce and allure Indian investors to buy additional equity created in the form of underlying equity shares," it added.
According to Sebi, the company and its directors had "made false/ misleading disclosures, misrepresentations and active concealments, which apart from themselves being fraudulent, deceptive, unfair and manipulative corroborate" the prima facie findings.
The alleged activities had taken place between 2010-13.

"The... Directions are independent of earlier directions issued against some of the entities," the interim order said.
Last year, Arun Panchariya and Pan Asia had been debarred by Sebi from the capital markets for 10 years in a separate case related to GDR issue by six other companies during 2009.
In its interim order, Sebi noted that "unless restrained, Arun Panchariya, Vintage and India Focus Cardinal Fund may make further attempts to convert their GDRs into equity shares of Rasoya Protein Ltd and sell them in Indian securities market".