https://www.taxtmi.com/caselaws?id=302684 In a GDR-related securities fraud matter, the Tribunal held that penalties on the company and its managing director were justified because the record showed false disclosures, concealment of loan and pledge arrangements, and diversion of proceeds outside India. An independent director was also held liable where, beyond signing the board resolution, audit committee membership gave access to financial information and the failure to detect misuse of GDR proceeds supported an inference of participation. By contrast, a director against whom only disputed presence at the meeting was alleged faced no material showing involvement in the fraud, so the caution and penalty were set aside. en-us Wed, 12 May 2021 00:00:00 +0530 Sat, 11 Jun 2022 08:57:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=302684 In a GDR-related securities fraud matter, the Tribunal held that penalties on the company and its managing director were justified because the record showed false disclosures, concealment of loan and pledge arrangements, and diversion of proceeds outside India. An independent director was also held liable where, beyond signing the board resolution, audit committee membership gave access to financial information and the failure to detect misuse of GDR proceeds supported an inference of participation. By contrast, a director against whom only disputed presence at the meeting was alleged faced no material showing involvement in the fraud, so the caution and penalty were set aside. Case-Laws SEBI Wed, 12 May 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=302684