SEBI alleges Vedic Ayurveda Ltd failed to reclassify promoter in 2020

This order addresses alleged violations by Vedic Ayurveda Ltd (formerly KD Leisures Limited) regarding promoter reclassification and shareholding disclosures, and by Arminder Singh and Priyanka Jain regarding failures to make timely disclosures under takeover regulations.

Who it concerns: Vedic Ayurveda Ltd (formerly KD Leisures Limited), Arminder Singh, Priyanka Jain

What SEBI found or ordered

• SEBI alleged Vedic Ayurveda Ltd failed to follow procedures for reclassifying a promoter (Kalpak Vohra HUF) from promoter to public category.
• SEBI alleged the company filed incorrect shareholding patterns for five quarters (September 2020 to December 2021) by listing the promoter in the public category.
• SEBI alleged Arminder Singh failed to make timely disclosures under Regulation 29(1) and 29(2) of SAST Regulations for six specific share transactions between December 2021 and March 2022.
• SEBI noted that Priyanka Jain’s summary settlement application failed because the settlement amount was not remitted within 30 days.
• The order is an adjudication proceeding initiated under Section 15-I of the SEBI Act, 1992.

Also in the document

• The proceedings involve a company formerly known as KD Leisures Limited, now Vedic Ayurveda Ltd.
• The alleged violations relate to a 2020 open offer by Sunayna Investment Company Limited (SICL) and subsequent share transactions.
• SEBI noted that BSE confirmed neither the HUF nor the Company made a request for promoter-to-public reclassification.