Dr. Rajendra Vinayak Kamat: Why he was charged with the SEBI Fines? The Truth Exposed (2023)
SEBI, the market regulator, fined Aanjaneya Lifecares’ five top personnel a total of Rs 8 Lakh for breaking the model code of conduct required by the legislation against insider trading.
Prof. Dr. Kannan Vishwanatth and Dr. Rajendra Vinayak Kamat, Vice Chairman and Managing Director of Aanjaneya Lifecare (now known as Dr. Datsons Labs Ltd.), have been fined Rs. 5 lakhs for trading in the company’s shares without obtaining the required pre-clearance from the company, according to a Sebi order.
What are SEBI charges?
The capital market regulator, SEBI, charges commissions for all sorts of securities sales and purchases. The total amount of the trades the client performed in a specific segment is included in the term “turnover.” The SEBI Turnover fees that apply to all categories are 10 crore.
Dr. Rajendra Vinayak Kamat has received SEBI instructions.
Additionally, he carried out “opposite transactions within 6 months of the earlier transaction”. He violated the model code of conduct for the prevention of insider trading by engaging in such activities, it continued.
In addition, the board of directors (Vishwanath, Shashikant Babanrao Shinde, Prabhat Kumar Goyal, and Paul Chakkapah Naythatil) and compliance officer Yogesh Patel have each been fined Rs 3 lakh for failing to follow the order’s requirements to implement the code of conduct and monitor trades to prevent insider trading.
The key managerial people, including the board of directors and compliance officer, must comply with the statutory code on insider trading for the securities market to operate in an orderly manner, according to Sebi.
According to the standards, every director and officer of the company who plans to deal in a company’s securities must obtain pre-approval for the transaction.
Dr. Rajendra Vinayak Kamat Committed fraudulent activity:
He made the decision to purchase Apex Drugs, an unlisted firm with headquarters in Hyderabad, for DDL in 2011 or 2012 for a sum of Rs 250 Cr, with the help of bank loans and with Dr. Rajendra Kamat’s approval.
In addition to giving Apex Drugs an advance payment of Rs 80 Cr via check, he also provided them DDL shares worth Rs 50 Cr. That agreement was canceled, it was later reported, since the banks pulled out.
He hasn’t made any attempts to date to get Apex Drugs to give him back this money, possibly due to personal reasons. In order to credit the DDL account with Rs 130 Cr with interest, Apex Drugs must comply with my request.
Who is Dr. Rajendra Vinayak Kamat?
Dr. Rajendra Kamat is the promoter and managing director of Aquariestrade Limited India and Rupus Global Limited Hong Kong. He received his bachelor’s and master’s degrees from the University of Pune in India.
He spent more than 20 years in the Middle East and Africa, working in prominent roles for the pharmaceutical industries in Kenya, Oman, and Saudi Arabia. He went back to India in 2007, where he established Aquariestrade Limited.
In 2017, the DR APJ Abdul Kalam University and Research Center in India awarded him an Honorary Doctorate for his contributions to the pharmaceutical industry. Due to his extensive knowledge of pharmaceutical products for emerging markets, he has held independent director positions on the boards of numerous companies.
Do you know about the company of Dr. Rajendra Vinayak Kamat?
Dr. Rajendra Vinayak Kamat served as the company’s promoter when Aaquaries Global Industries Limited (formerly Aquariestrade Limited) was founded in 2007. Dr. Sameer Talim purchased Dr. Rajendra Vinayak Kamat’s share in the company during FY2021. The company manufactures and trades intermediates for APIs (Active Pharmaceutical Ingredients). The company also uses a lending license to contract out its manufacturing.
The company claims to have 15 registered process patents for enhanced and non-infringing methods of manufacturing anti-cancer, analgesics, and infectious APIs. The company principally asserts to target the anti-infective and anti-cancer therapeutic areas with its trade in roughly 15–20 intermediates.
Other therapeutic markets served by the supplied medications include those for bronchitis and anti-malaria, among others. The company also operates a research and development facility in Taloja, Maharashtra, which is tasked with enhancing the methods for producing current items.
Significant rating flaws of Aaquaries Global Industries Limited
- Risks associated with currency fluctuations and vulnerability to regulatory limitations
Given the strict regulations that govern the pharmaceutical industry, any unfavorable policy changes could have an impact on how the business is run. Regulatory limitations on pricing caps and product approvals in export markets also continue to be a threat to operations.
Any unhedged foreign exchange exposure means that the Company’s profitability is still subject to the risk of currency fluctuation. Since the bulk of the company’s products are sold in export markets and the majority of its raw materials are imported from China, a certain amount of the risk associated with foreign exchange is inevitably hedged.
- Operations with a high working capital requirement
Gross current asset (GCA) days of 187 days in FY21, which are a result of the company’s high receivables days of 114 days, demonstrate the company’s highly working capital-intensive business.
- Risk of Concentration
Exports, mostly in areas with limited regulation, account for the majority of the company’s sales. With a sizable portion of its revenues coming from the Middle East region, the company is still at risk from geographical concentration. However, the promoters have solid relationships with the opposing parties and a thorough grasp of the Middle Eastern market, which provides reassurance.
In the end, we come to the conclusion that Dr. Rajendra Vinayak Kamat is accountable for deceiving investors in order to make money unfairly. Before making an investment, you can also visit his company’s risky areas. He received a fine from SEBI as a result.