Key Quantitative Figures
- Total penalty imposed: ₹2,00,000 (Rupees Two Lakh Only)
- Penalty breakdown: ₹1,00,000 under Section 15HB of SEBI Act, 1992 and ₹1,00,000 under Section 23H of Securities Contracts (Regulation) Act, 1956
- Payment deadline: Within 45 days of receipt of the Order
Parties Involved
- Issuing authority: Securities and Exchange Board of India (SEBI)
- Regulated entity: Praveg Limited (formerly known as Praveg Communications (India) Limited)
- Related entity: Sword and Shield Pharma Limited (subject of amalgamation)
- Company representative: Mukesh Chaudhary, Company Secretary & Compliance Officer
Nature of Violations
The Adjudicating Officer held that the Company violated the following provisions in connection with the scheme of amalgamation of Sword and Shield Pharma Limited with the Company:
- Clause I.A.3(a) of Annexure I to SEBI Circular No. CFD/DIL3/CIR/2017/21 dated March 10, 2017
- Clause I.A.8(b) of Annexure I to the said SEBI Circular
- Clause I.A.10 of Annexure I to the said SEBI Circular
These violations were read with Regulation 11 of the SEBI Listing Regulations.
Financial Impact
- The Order imposes a monetary penalty of ₹2,00,000 (Rupees Two Lakh Only) on the Company
- No other specific financial or operational impact has been quantified in the Order
- The penalty is payable within 45 days of receipt of the Order
Procedural Context
- The proceedings relate to the amalgamation of Sword and Shield Pharma Limited with the Company
- Alleged non-compliances in connection with the scheme of amalgamation
- Order passed under Section 15-I of SEBI Act, 1992 read with Rule 5 of SEBI (Procedure for Holding of Inquiry and Imposing Penalties) Rules, 1995
- Order also passed under Section 23-I of Securities Contracts (Regulation) Act, 1956 read with Rule 5 of Securities Contracts (Regulation) (Procedure for Holding of Inquiry and Imposing Penalties) Rules, 2005