SEBI v. JMD Telefilms Industries Ltd and others (funding of preferential allottees, 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 October 2022 a SEBI adjudicating officer penalised the listed company JMD Telefilms, its directors and a web of allottees and conduit companies for funding a 2011 Rs 19 crore preferential allotment to its own promoter group. Fraud penalties totalling about Rs 1.53 crore across 26 noticees were imposed, including small penalties for disclosure and summons failures.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEBI (India)
Date filed	2022-10-28
Date resolved	2022-10-28
Court	SEBI adjudicating officer
Status	judgment
Asset class	equities
Instruments	JMD Telefilms shares (2011 preferential allotment)
Venue	BSE
Criminal parallel	No
Defendants	JMD Telefilms Industries Ltd (now JMD Ventures Ltd) (entity) ; Kailash Prasad Purohit (individual) ; Jagadish Prasad Purohit (individual) ; Pravin Tukaram Sawant (individual) ; Renuka Trust (entity) ; Saurabh Family Trust (entity) ; Priyanka Trust (entity) ; Madhav Trust (entity) ; Adarsh Trust (entity) ; Unisys Softwares & Holding Industries Ltd (entity) ; JMD Sounds Ltd (entity) ; Matrix Systel Pvt Ltd (entity)
Also named elsewhere	JMD Sounds Ltd is named in 2 other matters ; Unisys Softwares & Holding Industries Ltd is named in 1 other matter
Techniques

What was ordered

Civil penalty: —
Disgorgement: —
Prejudgment interest: —
Total relief: —
Alleged gain: —
Penalty as published: 15.3m 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 is dated 28 October 2022 and was made by SEBI adjudicating officer Prasanta Mahapatra under section 15-I of the SEBI Act. It runs to 108 pages and covers 26 noticees. They are JMD Telefilms Industries Ltd (now JMD Ventures Ltd), a company listed on BSE; its directors Kailash Prasad Purohit, Jagadish Prasad Purohit and Pravin Tukaram Sawant; five family trusts and two companies that were allotted shares; ten companies said to have routed the money; and four earlier allottees and one further promoter-group entity. Together these include 14 noticees not named above.

SEBI examined January 2009 to March 2011. It alleged that for the 2011 preferential allotment, in which the company raised Rs 19 crore from eight promoter-group entities on 11 January 2011, the company itself supplied the money the allottees paid, passing it through other companies' bank accounts. The trusts, for example, received between Rs 0.50 crore and Rs 1.18 crore each from a conduit company, and the company then repaid the conduit. Another allottee later received Rs 4 crore back from the company. The charge was fraud under section 12A of the SEBI Act and PFUTP Regulations 3(b) to (d) and 4(1).

The adjudicating officer held the fraud established against the company, its three directors, the seven allottees and the ten conduit companies, rejecting their explanations that the receipts were genuine loans or unrelated transfers for want of supporting evidence. He found a separate failure by the eight promoter-group allottees to make a takeover-code disclosure after acquiring 2.76 percent of the company, and found the four earlier allottees and one other entity liable for failing to answer SEBI summons.

Penalties under section 15HA ranged from Rs 6,00,000 to Rs 8,00,000 per fraud noticee. Penalties of Rs 1,00,000 each were imposed on the four summons defaulters and Rs 2,00,000 on the last noticee. Adding the table rows gives about Rs 1.53 crore, but the order shows one figure per noticee and does not give a total, and the allotment of the penalty between sections for the disclosure defaulters is not separated. The officer treated the passage of time as mitigating and found prior PFUTP orders against some noticees to be repeat conduct. The order notes that no gain or investor loss was quantified.

The record does not show the later fate of these penalties on appeal, the identity of the beneficial owner of the conduit companies, or any criminal case.

No library technique fits funding of one's own share issue, so the technique list is empty.

This library tags the matter with no technique and records it as issuer fraud with monetary penalties. 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

2022-10-28 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.

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.