Sebi noted that all the GDRs were subscribed by only one entity, Vintage FZE, on obtaining a loan from European American Investment Bank AG (EURAM).
The company acted as guarantor and deposited the entire GDR proceeds with EURAM Bank as security against the loan for subscription of GDRs issued by the company.
"By entering into such an arrangement, the noticees...have led the investors in India to believe that the issuer company i.e. Resurgere has got a good reputation in terms of investment potential because of which foreign investors have enthusiastically subscribed to its GDR, whereas in reality, the GDRs were subscribed by Vintage with the help of the company itself," Sebi said.
Noticees refer to chairman and managing director Subhash Sharma, whole time director Amit Sharma and non-executive independent director Nitin Sethi.
Sebi has banned the officials from accessing securities market for varying periods between one year to three years.
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