sebi:CO/243/ISD/03/2004
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Facts / Headnote
Trident Steels Ltd restrained from accessing the securities market and prohibited from buying, selling or dealing in securities for a period of five years with immediate effect.
Provisions invoked
- s. 11B
- s. 4(3)
- s. 11
- s. 113
- s. 56
Parties
- Trident Steels Ltd
Holding
Trident Steels Ltd was restrained from accessing the securities market and prohibited from buying, selling or dealing in securities for a period of five years for non-disclosure of pledging of promoter shares in the prospectus, misstatement regarding dividend payment, and non-transfer of shares lodged for transfer.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against Trident Steels Ltd Mar 31, 2004 | Orders : Orders of Chairman/Members CO/243/ISD/03/2004 SECURITIES AND EXCHANGE BOARD OF INDIA
It is alleged by the complainant that the directors of the company had pledged their personal holdings of 7,50,000 shares to the Bank of Baroda while availing an increase in the credit limit of the company for the purpose of working capital requirements. It is alleged that the directors Mr A.A Kazi and Dowell Leasing and Financing Ltd had given an undertaking to the Bank of Baroda for non – disposal of their shares which formed part of the above mentioned 7,50,000 share. But the same was not disclosed by the company in its prospectus, while filing it with SEBI for the purpose of coming out with a public issue. Therefore, this fact was not reported by the BSE in its notice issued to the members at the time of granting listing permission to the shares of the company. As a result, the complainant, who was a member of the BSE, had sold the shares of the company which included some shares forming part of the above mentioned 7,50,000 shares bearing distinctive nos. from 1 to 7,50,000. The complainant also stated that he had made payments to his clients who had delivered the above mentioned shares. Subsequently, objections were raised by the company and Bank of Baroda stating that the above mentioned shares formed part of the undertaking for non disposal given by the directors of the company at the time of taking loans from the bank. Therefore, the complainant alleged that the company had violated SEBI’s guidelines for disclosure and investor protection by hiding an important aspect
CHAIRMAN SECURITIES AND EXCHANGE BOARD OF INDIA 11. Therefore, in exercise of the powers conferred upon me by virtue of Section 4(3) read with Section 11 and Section 11B of SEBI Act. I hereby direct that Trident Steels Ltd be restrained from accessing the securities market and also be prohibited from buying, selling or dealing in securities for a period of five years. This direction shall come into force with immediate effect. G. N BAJPAI CHAIRMAN SECURITIES AND EXCHANGE BOARD OF INDIA
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Source: SecMarx — sebi:CO/243/ISD/03/2004. 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.