sebi:1300692677749

SEBI · SEBI · 2002-08-16 · G. N. Bajpai, Chairman, Securities and Exchange Board of India

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Facts / Headnote

Directions issued: UVAL and its named directors debarred from accessing the capital market for five years; public companies in which they hold controlling or substantial interest also barred from raising funds for five years.

Provisions invoked

• s. 11B
• s. 11(1)
• s. 21

Parties

• Universal Vita Alimentare Limited (UVAL)
• Dr Krishnamurthy
• Dr V B Mitbander
• Col. K K Rao

Holding

SEBI directed Universal Vita Alimentare Limited and its directors Dr Krishnamurthy, Dr V B Mitbander, and Col. K K Rao to disassociate from capital market related activities and not access the capital market for five years, and further directed that public companies in which these directors hold controlling or substantial interest shall not raise funds from the capital market for five years.

Full text

stated: "The company has already implemented the project for manufacture of pasta foods as mentioned hereinbefore. The Company was under trail runs till mid January 1992 and has commenced commercial production with effect from January 20, 1992. The company is marketing its products under the Brand name "SUFU". The company is in the process of finalizing the purchase orders for Balancing Equipments. The company has already completed the Process of setting up 3 satellite industries in Bombay, Madras and Guwahati and has placed orders for equipments for these units as available on No.9 in Material Contracts. These 3 satellite industries will start functioning from June 1992. The balance orders of Equipments for satellite industries to be situated at Calcutta, Delhi, Hyderabad, Ahmedabad and Kanpur are being finalized. These units will start functioning from September – October 1992 barring un-foreseen circumstances. The balancing equipments are proposed to arrive and installed at site by May 1992 and the Company shall go into production in full swing with better product mix by June-July 1992. By this time the 3 Satellite units will also start functioning and commence commercial production."

respect of the violations of the clauses of the listing agreement and in respect of the proposed directions under section 11B of SEBI Act, as mentioned in the show cause notices issued to them. The failure to submit the reports and annual accounts by such companies to the stock exchange, is in violation of the provisions of the Listing Agreement read with section 21 of Securities Contracts (Regulation) Act, 1956. 5.2 Further, the vanishing of companies after raising moneys from the public is a matter of grave concern. These violations and the non-traceability of the companies of this kind are detrimental to the interest of investors and to the integrity of securities market. Besides they have also eroded the confidence of the investors and the credibility of the capital market, which calls for suitable preventive action. Suitable preventive action. Therefore, it would be necessary in the interest of investors and for healthy development of the securities market, that companies such as UVAL and their directors who have vanished after raising money from the public should be prevented from accessing the capital markets again in future. Such a step would protect the investors from being duped by such vanishing companies. The above measure would also help in restoring confidence of investors and promoting integrity of securities market as it would give signal to the market that the fly by night operators will not be allowed to access the capital market. 5.3 The Supreme Court in Ra

period of five years. Dated at Mumbai on this 27th day of September 2002. G. N. BAJPAI Chairman Securities and Exchange Board of India

Source: SecMarx — sebi:1300692677749. 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.