sebi:1300688722692
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Facts / Headnote
Intermediary and its Directors prohibited from accessing the capital market for two years
Provisions invoked
- s. 4(3)
- s. 11B
Parties
- Jolly Leasing and Finstock Ltd.
- Shri Sanjay Choksi
- Shri Hitesh Choksi
- Shri Shailesh Swamy
Holding
M/s. Jolly Leasing and Finstock Ltd. and its Directors Shri Sanjay Choksi, Shri Hitesh Choksi and Shri Shailesh Swamy are prohibited from accessing the capital market for a period of two years with effect from 30th September, 2002.
Full text
As regards the close co-operation with the RTI and the company we as a Lead Manager were in their close touch with them for the work and we deputed Mr.Dipak R Mehta our MBD Officer who was directly working under Mr.Kirtidev Khatri the qualified company secretary and our chief officer of MBD Division and only because of our close follow up with them all the required information were provided by them. And to collect the datas and forms and all subsequent follow up work with all collecting branches wer done by the RTI in consultation with the company and not with us. As regards the processing of application and stock invests and other allied work related to this was done by RTI and the company only and were not consulted for that because we were consulted only at the time of finalisation of basis of allotment by the regional stock exchange. As regards the MOU between the company and the RTI for the stock invest to deposit the bank- we express our opinion that if the company gives an authority to do this work by the RTI they can give it by special MOU or otherwise it will be responsibility of the company only. As regards the realisation of stock-invests we were not knowing anything and again we do confirm that we were not taken in confidence at all". Enquiry Officer held that 40 applications (accompanied by stock invests which were ante-dated) were received after the closure of the issue and were considered for allotment. Lead Manager failed to act diligently. The contention of t
Date:16th September 2002
facts sympathetically and requested the Honourable Chairman not to darken our future by stopping Registration in future.’ An opportunity for personal hearing was given to M/s Jolly Leasing and Finstock Ltd. on 21/11/2001. No one from M/S Jolly Leasing and Finstock Ltd. turned up for the Hearing. Another opportunity for personal hearing before the Chairman SEBI was given to M/s. Jolly Leasing and Finstock Ltd. on 08/05/2002. Again no one turned up for the hearing. I therefore, proceed in the matter based on material available on record. On consideration of the material and evidence available on record, findings of investigations and submissions of the Lead Manager from time to time, I am of the view that allegations/charges mentioned in the show cause notice have been substantiated. M/s.Jolly Leasing and Finstock Ltd. failed to comply with the SEBI Circular dated 1/3/92 and did not discharge duty cast on them properly. Jolly Leasing failed to abide by the Code of Conduct prescribed in SEBI (Merchant Bankers) Regulations, 1992 and did not act diligently and carefully. I therefore, in exercise of powers conferred on me under Section 4(3) and 11B of SEBI Act, direct that Jolly Leasing & Finstock Ltd and its Directors viz. Shri Sanjay Choksi, Shri Hitesh Choksi and Shri Shailesh Swamy are prohibited from accessing the capital market for a period of two years. This order shall come into force with effect from 30th September, 2002.
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Source: SecMarx — sebi:1300688722692. 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.