The directors -- Kailash S Chaudhary, P F Sundesha, B R Rakhecha, Narendra Kumbhat and Arun Sood -- are facing fine in the range of Rs 10-20 lakh each.
The order follows a probe conducted by the regulator between August-September 2010.
Sebi noted that the company had issued 1.17 million GDRs worth $25 million in September 2010.
The investigation revealed that the entire 1.17 million GDRs were subscribed by only one entity, Vintage FZE, presently known as Alta Vista International FZE, on obtaining a loan from European American Investment Bank AG (EURAM Bank).
Besides, the company acted as guarantor and deposited the entire GDR proceeds received from Vintage FZE with EURAM Bank as security against the loan for subscribing to the GDRs issued by the company.
The company also failed to make requisite disclosures pertaining to the GDR issue.
The firm did not make disclosures regarding pledge agreement entered into with EURAM Bank for subscription of GDRs, delisting of GDRs on Luxembourg Stock Exchange and also failed to inform exchanges about termination of GDR facility by the global depository, Bank of New York Mellon, which was price sensitive information.
The scheme of arrangement of Aksh in allotting GDR issue to Vintage along with false and misleading corporate announcements "lead to conclusion that the same were done in a fraudulent manner," Sebi said.
Accordingly, the regulator has levied monetary penalty on the firm and the directors.