SEBI v. Golden Legend Leasing and Finance Limited and others (funded preferential allotment, 2022)

Judgment entered

✓ Checked against the primary document on October 9, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In July 2022 a SEBI adjudicating officer penalised Golden Legend Leasing and Finance Limited, two family allottees and a lender Rs 25,00,000 under the fraud provision, plus Rs 1,00,000 on a promoter for disclosure lapses, Rs 26,00,000 in all. The order finds that the company's own money was recycled to pay for its preferential warrants and shares, giving a false impression of capital infusion.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

—

Alleged gain

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Penalty as published

2.6m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

The order of 14 July 2022 comes from a SEBI investigation of Golden Legend Leasing and Finance Limited between January 2013 and February 2014. It looked at promoter shareholding disclosures and at whether the company had funded the allottees of its preferential issue. The noticees included the company, a family of allottees headed by Ashok Hiralal Shah, the lender Dhanlaxmi Lease Finance Limited, and a promoter, Ullash Jayantilal Parikh.

SEBI alleged that the company's own money, routed through other channels, was used to buy the warrants and shares issued to Ashok Hiralal Shah HUF and Meena Ashok Shah, so that the company created the impression of a capital infusion that did not occur. It alleged that Dhanlaxmi Lease Finance, which received about Rs 1.30 crore from the issue, helped the arrangement. Mr Shah died in 2020 or 2021, and the case against him was dropped.

The adjudicating officer rejected the company's explanations of its payments, examined bank statements and records from the share registrar, and found that the funds the allottees paid came from the company's own resources. He held that the company, the HUF and Ms Shah breached section 12A of the SEBI Act and Regulations 3(a) to (d) and 4(1) of the PFUTP Regulations, and that Dhanlaxmi Lease Finance aided the scheme in breach of Regulations 3(a), 3(d) and 4(1).

The penalties are Rs 10,00,000 on the company and Rs 5,00,000 each on the HUF, Ms Shah and Dhanlaxmi Lease Finance under section 15HA, and Rs 1,00,000 on Mr Parikh under section 15A(b) for failing to make insider-trading and takeover-code disclosures, Rs 26,00,000 in total. The officer noted that gains and losses could not be quantified and that the failure was not shown to be repeated.

The record does not show whether the penalties were paid or appealed, how large the preferential issue was in total, or what the allotted shares were later worth.

This library tags the matter as no specific technique, because the finding is a funded preferential allotment rather than one of the library's trading methods. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

Timeline

1. 2022-07-14 SEBI adjudication order (14 July 2022)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order
• Order (PDF)

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Record added October 8, 2026. submit a correction.