Final Order in the matter of GDR Issue by Winsome Yarns Ltd.

This is a final order by SEBI regarding the penalty amount to be imposed on Arun Panchariya for his involvement in the fraudulent Global Depository Receipt (GDR) issue by Winsome Yarns Ltd. The order follows remands from the Securities Appellate Tribunal (SAT) to re-examine the quantum of the fine.

Arun Panchariya (Noticee), Winsome Yarns Ltd. (Company)

• SEBI is directed by the SAT to recompute the quantum of the penalty after two previous remands.
• Previous penalties imposed were INR 25 Crore (Oct 2020) and INR 15 Crore (May 2024).
• The SAT upheld SEBI's finding that the Noticee was involved in the 'second leg' of the GDR transaction but questioned the penalty amount.
• The Noticee argued that the penalty was disproportionate compared to similar cases and that he was not connected to the second leg entities.
• The order notes that the SAT set aside a previous disgorgement direction against the Noticee in a related appeal (Appeal No. 206 of 2024).
• The GDR amount involved in the transaction is stated as USD 13.24 million.

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