sebi:15235

SEBI · SEBI · 2005-10-24 · Shri G Anantharaman, Whole Time Member

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Facts / Headnote

Interim ex-parte order dated 24.10.2005 confirmed with all directions against all persons mentioned therein, with immediate effect.

Provisions invoked

• s. 11B
• s. 11(4)
• s. 19
• s. 27

Holding

The Whole-Time Member confirmed the ad-interim ex-parte order dated 24 October 2005, maintaining the prohibitory directions against the company, its promoters, directors, connected clients and stock brokers from dealing in the scrip of Mega Corporation Ltd., and further directing the company not to issue equity shares or alter its capital structure, till further directions.

Full text

FOR SEBI : Shri Sunil Kadam, Dy.General Manager Shri Jai Sebastian, Legal Officer ORDER UNDER SECTIONS 11B AND 11(4)(b) OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 1.1 By an ad-interim ex-parte order dated 24.10.2005, the following directions were issued, for the reasons stated therein, pending investigation. : “a) The promoters of the company viz, Crayons Global Finance Ltd., Himanshu Mehta, Vimi Investments and Finance Ltd., Kunal Lalani, Beena Mehta, R.N. Mehta, Hiten Mehta, Odyssey Corporation Ltd. Pooja Equisearch Pvt. Ltd. and directors of the company Kunal Lalani, Hemanshu Mehta, Surendra Chhalani, H M Lalani, N K Nayak, K S Venkataraman, S L Golchha and Sachin Mehra are hereby directed not to buy, sell or deal in securities of Mega Corporation Ltd, directly or indirectly, till further

buy, sell or deal in securities of Mega Corporation Ltd, directly or indirectly, till further directions in this regard. c) The clients Vishal Kumar Textiles P Ltd, Amar Adhav, Deepak Narvekar, Deepak Todkar, Ganesh Raut, Jay Shah, Jayesh Waghela, Stockholm Mercantile Co Pvt L., Rajkishore Singh, Sharpline Trading Co Pvt Ltd, Umesh Choukekar are hereby directed not to buy, sell or deal in any securities, directly or indirectly, till further directions in this regard. d) The Stock Brokers viz., India Bulls Securities Ltd., Fortis Securities Ltd., Ruchiraj Shares and Stock Brokers (P) Ltd., who contributed significant volume in the trading of shares of the company while dealing on behalf of the interconnected clients are hereby directed not to buy, sell or deal in securities of Mega Corporation Ltd. on behalf of the promoters, directors and clients, directly or indirectly, till further directions in this regard. e) The Depositories shall not give effect to any transfer of shares of Mega Corporation Ltd. lying in the beneficial owner accounts of the entities mentioned at paragraph 5.1 a) and 5.1 b) of the interim order f) The Depositories shall not give effect to any transfer of any securities lying in the beneficial owner accounts of the entities mentioned at paragraph 5.1 c) of the interim order.” The ex-parte order states that the entities/persons against whom these directions were issued may file their objections, if any, to the order within 15 days from the date of the orde

(i) it made its corporate announcements in the normal course of business and with a view to comply the requirements of the Listing Agreement. It emphasized that these were not hollow announcements but were supported by actual facts and underlying documents as proof. The announcements were very few and far between and were bonafide and as approved by the board of directors. (ii) in the changing market dynamics, the company cannot be faulted for movement in its share price. The shareholders’ independent decisions to deal in the company’s shares cannot be twisted with a view to have adverse ramifications. Hence, if the impugned order is not revoked, it would have disastrous effect on the shareholders who may view SEBI’s

Source: SecMarx — sebi:15235. 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.