Final Order in the matter of First Overseas Capital Limited

This is a final order by SEBI regarding First Overseas Capital Limited (FOCL), a registered Merchant Banker, concerning violations of net worth requirements, underwriting limits, and submission of false information to the regulator.

First Overseas Capital Limited (FOCL); Mr. Satyen Dalal (Chairman and Managing Director); Mr. Rajesh Mewavala; Boisar Realities Private Limited; Falcon Recreational Activities Private Limited; Chasam Investments and Leasing Private Limited; Mr. Rushabh Shroff; Ms. Mala Soneji.

• SEBI found FOCL failed to maintain the mandatory net worth of ₹5 Crore.
• SEBI found FOCL undertook underwriting obligations exceeding 20 times its net worth.
• SEBI found FOCL accepted public deposits to fulfill underwriting obligations.
• SEBI found FOCL submitted false and misleading information to the regulator.
• SEBI found FOCL indulged in business other than the securities market.
• An interim order dated October 23, 2024, debarred FOCL from taking new issue management mandates.
• The Securities Appellate Tribunal (SAT) stayed the debarment on December 11, 2024, subject to FOCL bringing in ₹3 Crores to meet net worth requirements.
• FOCL complied with the SAT direction by issuing preference shares to its CMD, Mr. Satyen Dalal, to raise the required capital.
• The order concludes the enquiry proceedings initiated under the SEBI (Merchant Bankers) Regulations, 1992.

Written from the document by AI, and checked against it. The original below is authoritative.

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