The matter pertained to a forensic investigation initiated by SEBI in relation to the books of accounts of FRL to ascertain possible market manipulation as well as wrongful diversion/siphoning of its funds by promoters /directors/key managerial persons, leading to possible violations of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (PFUTP Regulations), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations).
After examination of the evidence on record as well as the arguments made, SEBI has held that there has been no material on record to demonstrate any fraudulent act committed by the Biyanis and also observed that there has been no diversion of funds of FRL. SEBI’s penalties were limited to disclosure violations for which it imposed a monetary penalty of INR 20 lakhs each on the Biyanis and INR 10 lakhs on the KMP of the Company, while observing that there was no element of fraud or active concealment neither was there any wrongful gain made or loss avoided by any of the Noticees. The Trilegal Financial Regulatory team comprised Partner: Shruti Rajan, along with Counsel: Vivek Shah, and Associates: Paras Taneja, Anugraha Jaising, and Taposh Das.
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