Sebi disposes of charges against Splash Media; 3 directors

Capital market regulator Sebi today disposed of the charges against Splash Media and Infra and its three directors related to irregularities in the company's proposed rights issue back in 2010.
At the same time, the regulator has imposed "a penalty of Rs 5 lakh" on Splash Media and Infra for violation of listing agreement norms.
The company had also failed to comply with listing norms that required that at least 50 per cent of the total revenue in the preceding one year period should have been accounted for by the new activity suggested by the new name.
It was observed that the company was originally incorporated on July 7, 1981 in the name of Indus Commercial Ltd which was later changed to Hindustan Stockland Ltd and further changed to Splash Mediaworks.

Again its name was changed to Splash Media & Infra Ltd vide a fresh certificate of incorporation consequent to name change dated November 9, 2009.
Sebi show cause notice had also alleged that Splash Media and its directors -- Kailash C Sharma, Nalin R Panchal and Vishal S Gogawat had not disclosed in its 'Draft Letter of Offer' for the rights issue "material" information.

However, Sebi in two separate orders today noted that the charges against the company in this regard "do not stand established".
In the case of the directors, Sebi found that "these charges leveled against the noticees are applicable to public issues whereas in the instant proceedings, it is a case of proposed rights issue".

"Moreover, the DLO in respect of the proposed rights issue was withdrawn and Splash Media and Infra did not make its proposed rights issue," it added.
Sebi had conducted investigation in the proposed rights issue of Splash Media and Infra on observing certain irregularities and inconsistencies in the Draft Letter of Offer dated December 17, 2010.