Aadhaar Ventures India Ltd. (AVIL) and its directors were fined a total of Rs 25 lakh by the capital markets regulator SEBI for breaking the listing requirements and insider trading laws. Aadhaar Ventures India Ltd. (AVIL), its directors Jils Raichand Madan, Somabhai Sunderbhai Meena, and Jyoti Munver, and the regulator each received a fine of Rs. 10 lakh (to be paid jointly and severally) for disclosure violations.
Aadhaar Ventures fined by SEBI: Key Points
- It fined Aadhaar Ventures India Ltd. (AVIL) and Meena Rs. 5 lakh (to be paid jointly and severally) for breaking the rules on insider trading.
- Aadhaar Ventures India Ltd. (AVIL), Madan, Meena, and Munver had violated disclosure lapses by failing to disclose the information to the stock exchange.
- Additionally, Munver violated PIT (Prohibition of Insider Trading) regulations by failing to ensure that AVIL had complied with continuous disclosure obligations while serving as the company’s compliance officer.
- It assessed Aadhaar Ventures India Ltd. (AVIL) a 5 lakh rupee fine.
Aadhaar Ventures fined by SEBI: Background
- The order was issued after SEBI opened a preliminary investigation into claims of price manipulation in the Aadhaar Ventures India Ltd. (AVIL) stock and discovered that the company had made an announcement in August 2014 regarding the acquisition of a business in Africa and the subsequent establishment of an overseas subsidiary in Singapore—an announcement that did not come to pass.
- SEBI then carried out a separate inquiry for the months of July to September 2014.
- According to the SEBI investigation, Aadhaar Ventures India Ltd. (AVIL) made corporate announcements on August 1 and August 14, 2014, regarding the purchase of a business in Africa and the establishment of a foreign subsidiary in Singapore, which were both considered to be “price sensitive information.”
- However, despite numerous warnings provided to Aadhaar Ventures India Ltd. (AVIL), the corporation failed to respond when BSE requested information from it.
Aadhaar Ventures fined by SEBI: Current Situation
- The outcome of SEBI’s appeal, which is currently before the Supreme Court, might, however, affect the severity of this penalty. Listing conditions are covered by Section 23E of the Securities Contracts (Regulation) Act.
- In the meantime, the regulator fined BRH Wealth Kreators Ltd (formerly known as BMA Wealth Creators Limited) Rs 10 lakh for breaking regulatory guidelines.
- The order was issued following a SEBI investigation into potential irregularities involving the issuance of securities by BRH Wealth Kreators Ltd.