SEBI Slaps Nissan Copper in GDR Subscription scam

Securities Exchange Board of India banned the Nissan Coppers Limited and its promoters Ratanlal Mardia, Atul MArdia and Praveen Shah from raising money from Stock exchanges for next five years. This case pertains to the GDR Subscription scam where the whole GDR issue of the company in the year 2010 was subscribed by only one subscriber.

Nissan Copper Limited made corporate announcements on 20/05/2010 that the GDR Issue was successful and was fully subscribed were misleading as Nissan Copper Limited had facilitated the subscription of its own GDR issue where the sole subscriber Vintage FZE obtained loan from the EURAM Bank for subscribing to the GDR issue of Nissan Copper Limited, which secured that loan by offering its escrow account as security to EURAM Bank.

Escrow account is the bank account where the proceeds of the GDR were collected. This circular transactions were carried out to create the misleading impressions in the eyes of the Indian investors who would cheer up the news of overseas subscription of Global Depository Receipts leading to increase in the stock market prices artificially. This order is a extension of the market manipulation scheme worked out by the promoters of Alka India Limited.


Onkar Bhanarkar
Onkar is a Masters in Cyber Security, Ireland. He is a cybersecurity professional with extensive knowledge in Digital forensic investigations and Risk assessment. Onkar Bhanarkar is the Specialist Regtech analyst who contributes articles on money laundering enforcement actions in India, GDPR, Risk assessment, and Cyber Attacks.