SEBI disposes of proceedings against Bonanza Portfolio Ltd and its directors without any adverse action following an inspection of its merchant banking activities.
Proceedings against director Satya Prakash Goel were abated due to his death prior to the issuance of the Show Cause Notice.
The inspection had alleged lack of due diligence and document fabrication related to two NCD issues for Shakti Finance Ltd, but SEBI found insufficient evidence.
The order clarifies that directors cannot be held vicariously liable without evidence of their direct involvement in the alleged violations.