sebi:CO/200/ISD/02/2004
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Facts / Headnote
Direction to disassociate from capital market for ten years
Provisions invoked
- s. 11B
- s. 4(3)
- s. 11
- s. 63
- s. 69
Regulations
- Reg. 11
- Reg. 4(a)
Parties
- Pratha Investments
- Smt. Sharmila Gang
Holding
Pratha Investments and its proprietor Smt. Sharmila Gang were directed to disassociate from all capital market related activities and not access the capital market for a period of ten years, for aiding and abetting the promoters of Ritesh Polyster Ltd. in bailing out the public issue and manipulating the scrip.
Full text
2 4. Having been satisfied that there was a prima-facie case for investigation, SEBI conducted an investigation to find out whether there was an attempt by the promoters and others to bail out the issue and to manipulate the price of the scrip.
3 8. I have carefully considered the facts and circumstances of the case and also submissions made by Pratha Investments vide its letters dated 8.03.2003. I have also taken into consideration the submissions made by the representative of Pratha during the personal hearing. On perusal of aforesaid submissions my findings are as under:
4 separate account opened for this purpose and was being deposited in other accounts also. 10. I find that as per the prospectus, dated 30.3.95, 15,00,000 shares (out of the issue size of 45,00,000 shares) were reserved for promoters, relatives and their friends on firm allotment basis. The face value of the share was Rs.10/- and the premium was Rs.5/-. As per the prospectus, the promoters contribution was Rs.2,25,00,000 and this amount should have been brought in as their part of contribution before the opening of the public issue and the Auditors certify the receipt of the same. The auditors were Gang & Company, Chartered accountants; Shri Mukesh Gang was the proprietor of the said firm who is husband of Smt. Sharmila Gang the proprietor of Pratha Investments.
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Source: SecMarx — sebi:CO/200/ISD/02/2004. 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.