BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA, MUMBAI
CONSENT ORDER
ON THE APPLICATION SUBMITTED BY
M/s. ADD INVESTMENTS
IN THE MATTER OF
GRANULES INDIA LTD.(PDF)
CO/IVD3/1046/ 01 /2007
1. SEBI conducted investigation into the price manipulation in the shares of Granules India Ltd. Pursuant to the investigation, proceedings under Section 11, 11B of the SEBI Act, 1992 have been initiated against the applicant, M/s ADD Investments. SEBI vide its Show Cause Notice ref. no. IVD/ID3/PKB/AA/GIL/90161/2007 dated March 29, 2007 has alleged that the applicant has violated the provisions of Regulation 4 (a), (b), (c), (d) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995. The said proceedings are pending with SEBI.
2. The applicant made an application dated July 24, 2007 and an affidavit of “undertakings and waivers” in the matter in terms of SEBI Circular No. EFD/Cir.-1/2007 dated 20th April, 2007. Pursuant to the said application, applicant vide letter dated August 31, 2007 has proposed revised consent terms submitting that “we propose to offer Rs.3,00,000/- (Rupees three lakh only) towards consent terms in the matter.” The revised terms as proposed by the applicant have been placed before the High Powered Advisory Committee (HPAC) and HPAC after deliberation recommended the case for settlement on the consent terms proposed by the applicant.
3. In terms of the applicant’s proposal for the sole purpose of settling the matter on hand and without admission or denial of guilt on the part of the applicant to the finding of fact or conclusion of law, applicant has remitted a sum of Rs.3,00,000/- (Rupees three lakh only), vide Demand Draft No. 247981 dated October 17, 2007 drawn on Bank of India, Mumbai, towards the terms of consent in the matter.
4. In view of the above, it is hereby ordered that:
i) this consent order disposes of the said 11B proceedings under SEBI Act, 1992 pending before SEBI against the applicant in the matter of M/s. Granules India Ltd., and
ii) passing of this order by SEBI is without prejudice to the right of SEBI to take enforcement actions including commencing / reopening of the pending proceedings against the applicant, if SEBI finds that
a. any representations made by the applicant in the consent proceedings are subsequently discovered to be untrue.
b. the applicant has breached any of the clauses / conditions of undertakings / waivers filed during the current consent proceedings with SEBI.
This consent order is passed on this the 20th of November, 2007 and shall come into force with immediate effect.
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G. Anantharaman
Whole Time Member
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T. C. Nair
Whole Time Member
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