SEC Files Settled Charges Against India Globalization Capital and Its CEO for Disclosures Regarding Availability of Its First Cannabis Product

ADMINISTRATIVE PROCEEDING
File No. 3-20177

December 21, 2020 - The Securities and Exchange Commission today announced settled charges against India Globalization Capital, Inc., a Maryland-based company traded on the NYSE American Exchange, and its CEO, Ramachandra "Ram" Mukunda, for misstating in a press release that its first cannabis-based product was ready for sale.

According to the SEC's order, IGC's March 26, 2018 press release misstated that the product, called Hyalolex, and marketed as an Alzheimer's Disease symptom relief, "will be on the shelves in April" and available in ten dispensaries in Puerto Rico. The SEC's order finds, however, that despite the timeframe presented, IGC had not cleared significant hurdles necessary to begin selling Hyalolex at the time of the release and did not distribute the product at any time in 2018. According to the order, Mukunda was responsible for the contents of the press release and participated in editing it prior to its release.

The Order finds that IGC violated Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, and that Mukunda caused IGC's violations. Without admitting or denying the findings in the SEC's Order, IGC and Mukunda agreed to the entry of cease-and-desist orders that impose a $175,000 penalty against IGC, a $35,000 penalty against Mukunda. IGC also agreed to retain an independent consultant to evaluate and assess the effectiveness of IGC's internal disclosure controls.

The SEC's investigation was conducted by Adam Eisner, Michael Fuchs, Richard Haynes, Wendy Kong, and Melissa Armstrong, and supervised by C. Joshua Felker, of the Enforcement Division in Washington, DC. The SEC appreciates the assistance of the New York Stock Exchange Regulation and the Financial Industry Regulatory Authority.