Ranbaxy's original promoters fined Rs.2,500 crore on Daiichi sale
New Delhi : The original promoters of home grown pharma major Ranbaxy Laboratories, that has since changed hands twice, have been slapped with a fine of Rs.2,562.78 crore by a Singapore arbitration court for allegedly misrepresenting facts during the stake sale to Daiichi Sankyo.
 
RHC Holdings, which has as directors industrialist brothers Malvinder Mohan Singh and Shivinder Mohan Singh and figures among the parties that were taken to the arbitration court, said legal opinion was being sought to go on appeal.
 
"All the parties to the arbitration are bound by confidentiality obligations as part of the arbitration proceedings," RHC Holdings said in a letter to BSE, adding the disclosure was being made as per the statutory requirements of India's markets watchdog.
 
Daiichi Sankyo, which had acquired Ranbaxy from the original promoters in 2008, faced a lot of heat in the US over misrepresentation of manufacturing processes at the Indian plants. In 2014, it decided to sell the Indian company Sun Pharma in a deal valued then at $3.2 billion.
 
A 35 percent stake in Ranbaxy had been bought by Daiichi for $4.2 billion.
 
The Singapore court was moved after Daiichi had decided in 2013 to pursue legal options.
 
"Daiichi Sankyo continues to support Ranbaxy in its efforts to address and correct the conduct of the past which led to the investigations by the US Department of Justice and the US Food and Drug Administration," the company had said in a statement.
 
"Daiichi Sankyo believes that certain former shareholders of Ranbaxy concealed and misrepresented critical information concerning US DOJ and US FDA investigations," the company added and declined further comment.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    SEBI directs Tribhuvan Agro to refund money collected from investors

    Market regulator Securities and Exchange Board of India (SEBI) has asked Tribhuvan Agro Project Ltd and the company promoters and directors to refund money collected from investors through redeemable preference shares and secured redeemable non-convertible debentures (NCDs). The refunds should include the money collected from investors, till date, pending allotment of NCD, with interest at the rate of 15% per annum compounded at half yearly intervals.

    According to the SEBI Order, the company and its promoters and directors are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market. They are also restrained from issuing prospectus, offer document or advertisement soliciting money from the public and associating themselves with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI. The restrictions shall continue to be in force till the expiry of four years from the date of completion of refunds to investors.

    According to the SEBI Order, the Debenture Trustee viz. Tribhuvan Agro Debenture Trust (represented by its Trustees, viz. Sukumar Mondal, Sanjay Nayak, Sujit Kumar Goswami, Rajib Das and Mohammed Sunwas Ali) is prohibited from acting as an intermediary, accessing the securities market and further restrained from buying, selling or dealing in securities, for a period of 4 years.

    The company was engaged in fund mobilising activity through issuance of Redeemable Preference Shares and Secured Redeemable Non – Convertible Debentures, to more than 49 persons, without complying with the relevant provisions of the Companies Act, 1956 the SEBI (Disclosure and Investor Protection) Guidelines 2003 read with the SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009 and the relevant provisions of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008.

    SEBI directed the company and its directors to issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily with wide circulation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within fifteen days of its Order.

    On 24 February 2015, SEBI had directed the company and its directors not to collect any more money from investors.

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    SEBI asks Sankalp Project to refund investors’ money with 15% interest
    SEBI probe found that the firm had mobilised at least Rs2.49 crore during 2010-14 by issuing NCDs to a large number of investors.
     
    Market regulator Securities and Exchange Board of India (SEBI), has directed Sankalp Projects Ltd and the company's seven directors to refund investors' money, which they illegally mobilised through issuance of securities.
     
    Besides barring the entities from the capital market for four years, SEBI has asked them to refund the money along with an interest of 15% per annum. 
     
    The company had collected funds illegally through issuance of non-convertible redeemable debentures (NCDs). 
     
    SEBI probe found that the firm had mobilised at least Rs2.49 crore during 2010-14 by issuing NCDs to a large number of investors.
     
    The securities were issued by the company to more than 49 people, which, under the norms, made it a public issue that requires compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among other things, which it failed to do.
     
    "I am inclined to accept that the company has made offer and issued NCDs to a large number of persons thereby mobilising at least Rs2.49 crore," SEBI's Whole Time member Prashant Saran said.
     
    Further, it was found that the debenture trustee of the company - Sankalp Debenture Trust (represented by Moumita Bhowmick) acted without obtaining registration from SEBI.
     
    The entities have been restrained and prohibited from buying, selling or otherwise dealing in the securities markets for four years and the ban will continue till the completion of refunds to investors.
     
    In case the company fails to comply with the order in three months, SEBI said it would make a reference to the state government or local police to register a case against them for fraud, cheating and misappropriation of public funds.
     
    Besides, it would make a reference to the Ministry of Corporate Affairs to initiate appropriate action as deemed fit.
     
    Further, Sankalp Debenture Trust has been prohibited from acting as an intermediary in the securities market till it obtains registration from SEBI. It has also been restrained from accessing the securities market for four years.
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