SEBI bans Lyka Labs for 3 years for manipulating GDR to raise Rs 37 crore

Sebi noted that the company had issued GDRs on December 7, 2005 for raising USD 5 million.;

Published On 2020-06-08 05:00 GMT | Update On 2022-12-08 05:49 GMT

New Delhi: Markets regulator Sebi on Friday restrained Lyka Labs Ltd from accessing the securities market for three years in a matter pertaining to manipulation in the issuance of global depository receipts (GDR).

During the period of restraint, the firm cannot access the market directly or indirectly including by issuing prospectus, offer document or advertisement soliciting money from the public and is further prohibited from buying, selling or otherwise dealing in securities, the regulator said.

Sebi noted that the company had issued GDRs on December 7, 2005 for raising USD 5 million.

The investigation conducted by Sebi revealed that the firm had engaged in a fraudulent arrangement for facilitating the financing of the subscription to its GDR issue and had made misleading disclosures to the market and to the investors.

On the basis of authorization given by the board of directors, the company facilitated the subscription to its GDR issue by Fusion Investment on the strength of a loan obtained by it from Banco Bank against which the GDR proceeds of the company were kept as security.

By doing so, the firm has breached the provisions of Sebi Act and Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.

Also Read: Lyka Labs Faces Liquidity Crunch, Sales Affected Due To COVID Restrictions

Article Source : PTI

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Hina Zahid

Hina Zahid Joined Medical Dialogue in 2017 with a passion to work as a Reporter. She coordinates with various national and international journals and association and covers all the stories related to Medical guidelines, Medical Journals, rare medical surgeries as well as all the updates in the medical field. Email: editorial@medicaldialogues.in. Contact no. 011-43720751

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SEBI bans Lyka Labs for 3 years for manipulating GDR to raise Rs 37 crore

Sebi noted that the company had issued GDRs on December 7, 2005 for raising USD 5 million.;

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