In an interim order cum show cause notice passed on Monday, the market watchdog directed Onelife Capital Advisors Ltd (OCAL) and Naigs to show cause as to why appropriate directions/restrictions should not be issued against them.
OneLife Capital Advisors and Nigs are the promoters of BSE-listed entity Family Care Hospitals Ltd.
Sebi said the prima facie findings highlight massive misrepresentation in financial statements by OCAL, mainly by inflating revenue and expenditure figures and presenting a rosy picture to the public about the company’s business when in reality, these were bogus sales and purchases.
The modus operandi of the company (OCAL) is riddled with all kinds of regulatory violations, such as circuitous transactions between related parties without any disclosure or approval, diversion of funds as loans between related parties, corporate governance failures, etc., the regulator added.
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According to SEBI, these ambiguities of OneLife Capital Advisors and its promoters were ignored by the secret or patent approval of watchdogs visible inside and outside the company, namely, compliance officers, audit committee members and statutory auditors.
Such a conspiracy by unscrupulous promoters and their ilk presents a textbook case of public shareholders being taken for a ride in view of the possible consequences, he added.
Further, SEBI also asked Notice Nos. 1 to 9 (OCAL, its promoters, Manoj Ramgopal Malpani, Ram Narayan Gupta, Amol Shivaji Otade, Sonam Satish Kumar Jain, Dhananjay Chandrakant Parikh and Gurunath Mudalapur) to show cause why an inquiry should be conducted. . No arrest shall be made against them in respect of alleged violation of the provisions of PFUTP rules and disclosure norms.
The order came after SEBI received a complaint from complainants in October 2022 regarding alleged diversion of funds and misrepresentation in financial statements by Family Care Hospitals Ltd (formerly Scandent Imaging Ltd) and OCAL.
OCAL matter was also investigated by NSE.
Thereafter, SEBI investigated the matter to ascertain whether there was any violation of the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms and LODR (Listing Obligations and Disclosure Requirements) rules.
The investigation period was from April 2018 to March 2023.
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