SEBI v. Global Infratech & Finance Ltd. and others (alleged funding of preferential allottees, 2023)
Dismissed
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.
On 19 June 2023 a SEBI whole-time member disposed of a show cause notice against Global Infratech & Finance, JMD Sounds and ten others, holding the alleged circular funding of the company's 2012 preferential share allotments not proved.
The record
| Agency | SEBI (India) |
|---|---|
| Date filed | 2023-06-19 |
| Date resolved | 2023-06-19 |
| Court | SEBI whole-time member |
| Status | dismissed |
| Asset class | equities |
| Instruments | Global Infratech & Finance Ltd. shares issued by preferential allotment |
| Venue | BSE |
| Criminal parallel | No |
| Defendants | Global Infratech & Finance Ltd. ; Pravin Tukaram Sawant ; Jagdish Chander Sharma ; Gordhan Lal Agrawal ; Sudhir Agrawal ; Anju Agarwal ; Anoop Jain ; Anoop Jain HUF ; Ritu Jain ; Indira Naresh Riyawala ; Esha Kedia ; JMD Sounds Ltd. |
| Also named elsewhere | Anoop Jain HUF ; Global Infratech & Finance Ltd ; JMD Sounds Ltd |
| Techniques |
What was ordered
- Civil penalty
- —
- Disgorgement
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- Prejudgment interest
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- Total relief
- —
- Alleged gain
- —
What is alleged to have happened
A SEBI whole-time member, S. K. Mohanty, issued this order on 19 June 2023 under sections 11, 11B and related provisions of the SEBI Act. The twelve noticees were Global Infratech & Finance Ltd. (formerly Asianlak Capital & Finance), a BSE-listed company later suspended from trading, JMD Sounds Ltd., and several individuals and a Hindu undivided family who had received shares in the company's preferential allotments.
The company made two preferential allotments in 2012, of about 10.5 million shares in January to 49 entities and about 9.85 million shares in June to 44 entities, each at Rs 10 face value with a Rs 5 premium. SEBI investigated whether the company had funded subscribers in breach of the PFUTP Regulations 2003 and section 12A of the SEBI Act. It alleged that money passed from the company to JMD Sounds under cover of an unlisted-share purchase and from there to seven allottees, who then paid for the allotments.
The order records that the pattern of money movements and the allottees' behaviour looked strange and suspicious. It nonetheless accepts the company's explanation that the transfers to JMD Sounds were payment for unlisted shares, finds no evidence of a link between the company and JMD Sounds or between JMD Sounds and the allottees, and notes that only seven of 93 allottees were implicated and that the allottees had returned the sums before the proceedings began.
On the balance of probabilities the officer held that the funding scheme was not established and that the noticees had not violated section 12A or Regulations 3 and 4. The show cause notice was disposed of without penalty or restriction.
The record does not show whether SEBI appealed, and it does not show what the allottees later did with their shares or whether any investor was harmed.
This library does not assign a technique tag to the matter, because no technique in the library fits the conduct. 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
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.