https://www.taxtmi.com/caselaws?id=310545 In GDR-related violations, the Tribunal applied proportionality and held that sanctions were excessive where the breaches were sustained but there was no finding of fund diversion or wrongful gain, the proceeds were repaid for the stated corporate purpose, and no investor loss was shown. The debarment period and penalties on the company and active directors were therefore reduced, while the violation findings remained intact. It further held that independent directors could not be penalised or debarred merely because they signed the board resolution; absent evidence of participation in the fraudulent scheme, involvement in the funding arrangement, or role in the alleged defalcation, liability could not be inferred. The sanctions against the independent directors were set aside. en-us Thu, 14 Jul 2022 00:00:00 +0530 Mon, 30 Oct 2023 20:38:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310545 In GDR-related violations, the Tribunal applied proportionality and held that sanctions were excessive where the breaches were sustained but there was no finding of fund diversion or wrongful gain, the proceeds were repaid for the stated corporate purpose, and no investor loss was shown. The debarment period and penalties on the company and active directors were therefore reduced, while the violation findings remained intact. It further held that independent directors could not be penalised or debarred merely because they signed the board resolution; absent evidence of participation in the fraudulent scheme, involvement in the funding arrangement, or role in the alleged defalcation, liability could not be inferred. The sanctions against the independent directors were set aside. Case-Laws SEBI Thu, 14 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310545