SAT upholds Sebi orders in RDB Rasayan case

The Securities Appellate Tribunal ( SAT ) has upheld a Sebi order against BMD Exports Private Limited and Shreyanshnath Shares as well as their respective directors in a case related to irregularities in IPO of RDB Rasayan Besides, SAT has also upheld the regulator's rulings against Dave Harihar Kiritbhai and Prakashbhai Ishwarbhai Rana in the matter.Market regulator Sebi had slapped fines totalling Rs 5.750000000 on these entities for their involvement in fraudulent activities related to the IPO of RDB Rasayan.Subsequently, the entities had filed separate appeals before SAT challenging the Sebi's ruling in the case.Through a common order dated December 19, SAT said, "all four appeals are dismissed and impugned orders in these four appeals are upheld".The Securities and Exchange Board of India (Sebi) had found that IPO money was routed by RDB Rasayan through a web of inter-connected parties in order to enable trading clients which had dealt in the shares of the company to pay their stock brokers on time.As per the order, the entities who had dealt in the scrip of RDB Rasayan on the first day of listing (October 7, 2011) and had suffered losses as a result of trading.Each of them did not have money to meet his pay in obligations including in respect of trading done and had claimed to have received money from Sardhav Investments and Finance to meet the pay obligations.All of them had entered into identical loan agreements with Sardhav, "which lacks credence", the Sebi order noted.Individually, the regulator had imposed a joint penalty of Rs 20000000 on BMD Exports and its directors -- Jitendrabhai Ramanbhai Patel and Madhavlal Bechardas Patel.A total fine Rs 10000000 on Shreyanshnath Shares and Financial Services Private Limited , Patel Kirtikumar Gopalbhai and Chauhan Vijaykumar Babubhai.It had slapped a penalty of Rs 20000000 on Kiritbhai and Rs 7500000 on Rana in the matter.RDB Rasayan had come out with initial public offer of 4500000 shares at issue price of Rs 79 each in September 2011.Sebi had conducted investigation in the IPO of RDB Rasayan and its subsequent trading on and around listing day, since scrip of the company had witnessed wide fluctuations in price.