https://www.taxtmi.com/caselaws?id=464767 A listed company's preferential allotment funded by its own money was treated as a false appearance of genuine capital infusion and, therefore, a fraudulent and unfair trade practice under Section 12A of the SEBI Act and Regulations 3 and 4 of the PFUTP Regulations. The tribunal accepted that investor understanding of preferential allotment is fresh capital into the company; when the company itself finances the subscription, the transaction misleads the market. Explanations that the funds were an advance, loan, or adjustment against future fees were rejected, especially because the appellants took shifting stands. The penalty was upheld. en-us Wed, 07 Apr 2021 00:00:00 +0530 Thu, 13 Nov 2025 19:36:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=464767 A listed company's preferential allotment funded by its own money was treated as a false appearance of genuine capital infusion and, therefore, a fraudulent and unfair trade practice under Section 12A of the SEBI Act and Regulations 3 and 4 of the PFUTP Regulations. The tribunal accepted that investor understanding of preferential allotment is fresh capital into the company; when the company itself finances the subscription, the transaction misleads the market. Explanations that the funds were an advance, loan, or adjustment against future fees were rejected, especially because the appellants took shifting stands. The penalty was upheld. Case-Laws SEBI Wed, 07 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=464767