https://www.taxtmi.com/caselaws?id=467089 Diversion of preferential issue proceeds from the disclosed objects to interest-free loans was treated as misuse inconsistent with the issue terms and capable of attracting fraud and unfair trade practice liability under the SEBI framework. The note also explains that listed entities must disclose quarterly and annual statements of deviation between projected and actual utilisation of issue proceeds, and failure to file those disclosures constitutes a separate compliance breach. It further notes that a later ratification of the diverted utilisation will not cure defective notice and shareholder communication, and may itself be misleading. Audit committee responsibility depends on receipt of the required statement or monitoring report; absent those materials, non-review is not necessarily established. en-us Wed, 28 Jun 2023 00:00:00 +0530 Thu, 05 Mar 2026 18:28:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467089 Diversion of preferential issue proceeds from the disclosed objects to interest-free loans was treated as misuse inconsistent with the issue terms and capable of attracting fraud and unfair trade practice liability under the SEBI framework. The note also explains that listed entities must disclose quarterly and annual statements of deviation between projected and actual utilisation of issue proceeds, and failure to file those disclosures constitutes a separate compliance breach. It further notes that a later ratification of the diverted utilisation will not cure defective notice and shareholder communication, and may itself be misleading. Audit committee responsibility depends on receipt of the required statement or monitoring report; absent those materials, non-review is not necessarily established. Case-Laws SEBI Wed, 28 Jun 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467089