Adjudication Order in the matter of Polar Pharma India Limited

Last updated: 29 September 2020

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The Securities and Exchange Board of India (SEBI) investigated Polar Pharma India Limited (PPIL) for potential price or volume manipulation. The investigation revealed that PPIL failed to provide explanations for significant variations in its quarterly financial results and made delayed disclosures regarding a debt settlement approval from IDBI Bank. Consequently, SEBI initiated adjudication proceedings against the company.

Court :
SEBI

Brief :
UNDER SECTION 23‐I OF SECURITIES CONTRACTS (REGULATION) ACT, 1956 READ WITH RULE 5 OF SECURITIES CONTRACTS (REGULATION) (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIESBY ADJUDICATION OFFICER) RULES, 2005In respect ofPolar Pharma India LimitedIn the matter of Polar Pharma India Limited______________________________________________________________________FACTS OF THE CASE IN BRIEF:1.Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) conducted an investigationin the scrip of Polar Pharma India Limited (hereinafter referred to as ‘Noticee/PPIL/Company’),which is listed on Bombay Stock Exchange (herein after referred to as ‘BSE’) to ascertain any price or volume manipulation by certain entities,during the period July 4, 2005 to September 13, 2005 (hereinafter referred to as ‘investigation period’).SEBI observed that there are variations,in net profit/net loss after tax/ exceptional or extraordinary items between the unauditedquarterly and the results amended pursuant to limited review for the same period,in excess of 10% andRs.10 lakh.As per provisions of Listing agreement, the Noticeewas required to submit to the stock exchange an explanation of the reasons for variations, while submitting the limited review report, however,it was observed thatthe Noticee failed to submit any such explanation.Further, In terms of Clause 36 of

Citation :
ADJUDICATION ORDER NO. Order/BJD/MG/2020-21/9243

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