Order in the matter of Hexa Tradex Limited

What is this order about?

This order addresses the realignment and reorganization of investments by Hexa Tradex Limited (HTL) into promoter group companies, which SEBI found may have violated securities laws by not following proper procedures and misrepresenting financials to investors.

Who it concerns

Hexa Tradex Limited, Prithvi Raj Jindal, Sminu Jindal, Pravesh Srivastava, Arti Jindal, Raj Kamal Aggarwal, Kuldip Bhargava, Virtuous Tradecorp Private Limited, OPJ Trading Private Limited, Sahyog Holdings Private Limited, Siddeshwari Tradex Private Limited, Sajjan Jindal, Naveen Jindal, Shallu Jindal, Ratan Jindal

What was found or directed

• SEBI found that HTL's realignment of investments in Hexa Securities and Finance Company Limited (HSFCL) to promoter group companies without proper procedures may have misrepresented financials to investors
• SEBI noted that the 2014 reorganization was not in compliance with applicable laws
• SEBI's investigation concluded that the transaction was more than 8 years old and did not affect market integrity or have market-wide impact
• SEBI's legal affairs department stated that the matter was not a fit case to initiate investigation due to age and lack of market impact
• SEBI's Executive Director concluded no enforcement action was needed as the reorganization did not cause economic loss to shareholders or misstate financials
• SEBI's Corporation Finance Department noted that the matter should have been discussed informally and recommended holding the delisting case