SAT reduces penalty for not finding GDR issue fraudulent but violation of disclosure norms

COMPANY LAW/SEBI : Where company 'T' issued GDRs which were fully subscribed by 'V' and directors of company failed to disclose to Stock Exchange material information that ‘V’ took a loan from foreign bank for which company ‘T’ provided security in form of Pledge Agreement, in view of fact that loan amount had been repaid by 'V' and proceeds of GDRs had not been diverted to any third party, GDR issue was not fraudulent and therefore while affirming finding of violation related to non-disclosure,

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