sebi:11157
Facts / Headnote
Further proceedings against Shri Jalas Batra dropped
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 11
- SEBI (PFUTP) Regulations, 2003 — 13
- SEBI (PFUTP) Regulations, 2003 — 6(d)
Parties
- Shri Jalas Batra
Holding
Further proceedings against Shri Jalas Batra were dropped because he was not a director of the company at the time the preferential issue was made, and no individual act of commission or omission was alleged against him.
Full text
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.
towards preferential allotment. It was further observed that the company had shown a credit of only Rs. 4.80 crores in the bank account, as against Rs. 5.20 crores required to have been received (52 lac shares @ Rs 10 per share), leading to an apprehension that the allotment of shares to these investors was irregular and improper and that there was no genuine infusion of funds into the account of the company. Thus, the whole process of funding towards the preferential allotment was shown as a ‘book entry’ and shares were allotted to various investors, including promoter group, without actual infusion of funds. The net balance in the company’s account had remained almost constant, even after the last credit entry pursuant to preferential issue.
5.1.00 600826 To transfer 10,00,000 10,11,911.05 5.1.00 600827 To transfer 10,00,000 11,911.05 Total 4,80,00,000 4,80,00,000 It is seen that the amounts received towards the preferential allotment of shares were “credited” to and “debited” from the company’s account on the day of the allotment itself.
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Source: SecMarx — sebi:11157. 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.