SEBI v. Kaashyap Technologies Ltd and others (GDR issue disclosures, 2022)
Judgment entered
Checked against the primary document on October 8, 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.
A SEBI adjudicating officer fined Kaashyap Technologies and five of its directors Rs 85 lakh in total over a US$16.5 million GDR issue that the order finds was funded through a loan secured on the issue proceeds, with that arrangement hidden from investors. The penalties were imposed for breaches of the PFUTP Regulations and listing obligations.
The record
| Agency | SEBI (India) |
|---|---|
| Date filed | 2022-07-29 |
| Date resolved | 2022-07-29 |
| Court | SEBI adjudicating officer |
| Status | judgment |
| Asset class | equities |
| Instruments | Kaashyap Technologies Ltd shares and GDRs |
| Venue | BSE |
| Criminal parallel | No |
| Defendants | Kaashyap Technologies Ltd ; A. Venkatramani ; A. Ganesan ; R. Dakshinamurthy ; A. Sivakumaran ; R. Gopalan |
| Techniques | Misleading issuer disclosure |
What was ordered
- Civil penalty
- —
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- —
- Alleged gain
- —
- Penalty as published
- 8.5m INR
What is alleged to have happened
The adjudicating officer of the Securities and Exchange Board of India decided the matter on 29 July 2022. The noticees were Kaashyap Technologies Ltd, a company listed on the BSE, and five directors: A. Venkatramani, A. Ganesan, R. Dakshinamurthy, A. Sivakumaran and R. Gopalan. The matter concerns a Global Depository Receipt issue made in December 2007.
SEBI alleged that the company issued about 4.9 lakh GDRs worth US$16.5 million, all taken up by a single investor, Clifford Capital Partners. That investor paid with money borrowed from a bank, and the company's managing director signed an account charge agreement pledging the GDR proceeds as collateral for the loan. SEBI alleged that this meant the subscription was effectively financed by the company itself, and that the exchange was told of the issue in a distorted way.
The adjudicating officer found that the company concealed the charge agreement and misled investors into thinking the GDRs were genuinely subscribed. When the subscriber defaulted on about US$10.39 million, the bank recovered that sum from the GDR proceeds, which the order treats as GDRs effectively issued free of cost at other investors' expense. He found the five directors, who had authorised the arrangement at a board meeting, in breach of Section 12A and the PFUTP Regulations.
Under section 15HA the company was penalised Rs 25 lakh, the managing director Rs 20 lakh, and each of the other four directors Rs 10 lakh, Rs 85 lakh in all, payable within 45 days. The order finds additional breaches of the listing agreement by the company.
The record does not show whether any noticee appealed or paid, what happened to the GDR holders, or any criminal case, and the order describes none.
This library tags the matter as misleading issuer disclosure. 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.
What technique is this, and how does it work?
This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.
- Misleading issuer disclosure — see how it works, what statute it engages, and every other action tagged the same way.
Timeline
- 2022-07-29 SEBI order
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.
Related actions
Other actions in the library sharing at least one technique tag with this one.