Sebi gives notice to Raymond on market rule violations

TIL Desk/Business/Mumbai/ Capital markets regulator Sebi has issued a show cause notice to textiles major Raymond citing several violations of the securities market. The Securities and Exchange Board of India (Sebi) has alleged that Raymond failed to obtain necessary approvals for related-party transactions involving the lease of a city property and that the company did not comply with shareholder reclassification norms. violations of the securities market.

The Securities and Exchange Board of India (Sebi) has alleged that Raymond failed to obtain necessary approvals for related-party transactions involving the lease of a city property and that the company did not comply with shareholder reclassification norms. It specifically referred to the transaction involving lease of JK House in Mumbai to some of the promoters between 2007-2017.

Raymond had leased four flats in JK House to an entity named Pashmina in 2003 which the latter sub-leased to some individuals in the promoter group of Raymond, including Gautam Singhania, Veena Devi Singhania, Anant Singhania and Akshaypat Singhania. The Sebi show cause notice says that in 2015-16, when the property was being reconstructed, Raymond paid the rent of all the sub-tenants, including the promoters, in alternative accommodation. According to Sebi, while the promoters were paying Rs 7,500 a month for the sub-lease with Pashmina, Raymond paid Rs 12 lakh per month for the alternative accommodation of Singhanias.