sebi:10235
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Facts / Headnote
Restrained from accessing the securities market and prohibited from buying, selling or dealing in securities for a period of one year
Provisions invoked
- s. 11B
- s. 4(3)
Regulations
- Reg. 11
Parties
- Vishal Enterprises
Holding
Vishal Enterprises was restrained from accessing the securities market and prohibited from buying, selling or dealing in securities for a period of one year for its role in transactions carried out with a view to defraud genuine investors and posing a risk to the stock exchange mechanism.
Full text
2. Ritesh came out with a public issue of 45,00,000 shares of Rs. 10/- each at a premium of Rs 5/- per share. The paid up capital after the issue would be 69,96,000 shares. The issue was opened on 12th June 1995 and the earliest closing date was 16th June, 1995 and final closing date was 22nd June 1995. As per the prospectus, dated 30.3.95, 15,00,000 shares (out of the issue size of 45,00,000 shares) were reserved for promoters, relatives and their friends on firm allotment basis. The face value of the share was Rs.10/- and the premium was Rs.5/- As per the prospectus, the promoters contribution was Rs.2,25,00,000 which should have been brought in before opening of the public issue. The promoters of Ritesh were Ritesh Exports Ltd., Shri Surendra Kumar Agarwal, Smt. Roop Rekha Agarwal, Shri Ritesh Agarwal and Deepak Agarwal.
6. Pursuant to the above, an opportunity of being heard was given to Vishal on 15.05.03 which was later rescheduled to 12.06.03. Vishal had vide its letter received on 12.06.03 indicated that it would not be able to attend the hearing on the specified day and had requested another date of hearing. I am convinced that sufficient opportunity has been provided to Vishal for making its submissions before me. Therefore, I proceed to analyse the facts of the case based on the material available on record and the reply furnished by Vishal to the show cause notice.
3. Having been satisfied that there was a prima-facie case for investigation, SEBI conducted an investigation to find out whether there was an attempt by the promoters and others to bail out the issue and to manipulate the price of Ritesh’s scrip.
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Source: SecMarx — sebi:10235. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.