sebi:11153
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Facts / Headnote
Shri Hitesh Sanghvi prohibited from associating with any corporate body in accessing the capital market and from buying, selling or dealing in securities, directly or indirectly, for a period of 2 years
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 19
Regulations
- Reg. 11
- Reg. 3
- Reg. 13
- Reg. 6
- Reg. 6(d)
Parties
- Shri Hitesh J. Sanghvi
Holding
Shri Hitesh Sanghvi, as a director of Sawaca Business Machines Limited at the relevant time, is not a fit and proper person and is prohibited from associating with any corporate body in accessing the capital market and from buying, selling or dealing in securities for a period of two years. The company was found guilty of violating Regulation 6(d) of the PFUTP Regulations, 1995 read with clause 13.4.2 of the SEBI (DIP) Guidelines, 2000.
Full text
BACKGROUND 1. An investigation was conducted by SEBI, pursuant to Chairman’s order dated October 22, 2001, in order to find out whether there was any manipulation in the scrip of Sawaca Business Machines Limited (formerly Sawaca Finance Ltd.), in view of the observation that the scrip, which was illiquid prior to October, 1999, had gone up from Rs. 6.80 on October 26, 1999 to a high of Rs. 38.75 on December 30, 1999. 2. M/s. Sawaca Business Machines Limited (hereinafter to as "the company") came out with a public issue of 30,00,000 shares in March, 1996. The shares of the company are listed for trading on The Stock Exchange, Mumbai and Ahmedabad Stock Exchange. The company was promoted by Shri Satish R. Shah and Smt. Shetal S. Shah, who were also the Directors of the company.
5. It was observed that the company had not complied with the listing requirements, inasmuch as that it has failed to submit distribution schedule and financial results to BSE. As against last three years distribution schedules asked by the investigating team, the company vide its letter dated 28/04/01, submitted only one distribution schedule dated December 22, 2000. The company was issued reminders dated February 6, 2001, March 7, 2001, July 17, 2001 which indicates that the company has not been complying with the Regulatory requirements.
Date Cheq. No Particulars Debit Credit Balance 5.1.00 By Trf 40,00,000 40,11,911.05 5.1.00 600812 To Transfer 40,00,000 11,911.05 5.1.00 By Trf 40,00,000 40,11,911.05 5.1.00 600813 To transfer 40,00,000 11,911.05 5.1.00 By trf 30,00,000 30,11,911.05 5.1.00 600814 To transfer 30,00,000 11,911.05 5.1.00 By trf 30,00,000 30,11,911.05 5.1.00 600815 To transfer 30,00,000 11,911.05 5.1.00 By trf 10,00,000 10,11,911.05 5.1.00 600824 To transfer 10,00,000 11,911.05 5.1.00 By trf 40,00,000 40,11,911.05 5.1.00 600816 To transfer 40,00,000 11,911.05 5.1.00 By trf 40,00,000 40,11,911.05 5.1.00 600817 To transfer 40,00,000 11,911.05 5.1.00 By trf 40,00,000 40,11,911.05 5.1.00 600818 To transfer 40,00,000 11,911.05
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Source: SecMarx — sebi:11153. 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.