SEBI finds prima facie violations by DIL directors and linked entity

This is an ex-parte interim order by SEBI regarding suspected price and volume manipulation in the securities of Darjeeling Industries Limited (DIL). SEBI examined whether the company and its directors engaged in fraudulent preferential allotment of warrants and misutilization of funds.

Ashok Dilipkumar Jain, Dilip Keshrimal Sanklecha, Viha Ashok Jain, Sonali Abhaykumar Parmar, Abhishek Prakash Jain, Kirti Ravi Kothari, Kalidas Vijay Magar, Pradeep Sutodiya, Joy Banerjee, Punyah Sachin Jain, and Darjeeling Industries Limited (DIL).

• SEBI found prima facie violations of the SEBI Act and PFUTP Regulations by the noticees.
• SEBI identified a scheme involving the preferential allotment of 70,00,000 warrants to non-promoter entities at a price of ₹16.80 per warrant.
• SEBI noted that proceeds from the allotment were routed back to connected entities of Ashok Dilipkumar Jain or entities with little commercial substance.
• SEBI observed that DIL was not found at its registered addresses, raising doubts about its operations.
• SEBI issued interim directions pending the completion of the detailed examination.

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