sebi:CO/57/ISD/09/2004

SEBI · SEBI · 2004-08-13 · G.N. Bajpai, Chairman, SEBI

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Facts / Headnote

Interim order directing 58 entities not to buy, sell, transfer, pledge, dispose of or otherwise deal in shares of Kolar Biotech Ltd., Soundcraft Industries Ltd. and Adam Comsof Ltd. directly or indirectly until investigations are completed; post-decisional hearing scheduled for October 18, 2004.

Provisions invoked

• s. 11
• s. 11(4)

Regulations

• Reg. 199

Holding

SEBI, exercising powers under Section 11(4)(b) read with Sections 11 and 11B of the SEBI Act, 1992, restrained 58 promoters, directors, major shareholders, major selling clients and related entities from dealing in the shares of Kolar Biotech Ltd., Soundcraft Industries Ltd. and Adam Comsof Ltd. pending completion of investigation.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER SECTION 11 AND 11B OF THE  SEBI ACT AGAINST PROMOTERS OF KOLAR BIOTECH LTD. AND OTHERS  SEBI had received  complaints  from various entities regarding massive fraud alleged to have been committed by the company viz. Kolar Biotech Ltd.  The complainants had stated that the promoters of the company have committed a fraud on a large scale. The other companies belonging to the Group being Soundcraft Industries Ltd. and Adam Comsof Ltd.  Complainant has further stated that company had announced a bonus issue of 2:1 and also advertised in the ‘Economic Times’ regarding their ADR issue.  Further, in the Economic Times  there was also a sale notice by BOI regarding the property of Shri Raj Basantani who is the main promoter of Kolar Biotech Ltd.. The complainant had also mentioned  that the registered office of Kolar has been sealed by various banks, yet the company has advertised regarding its meeting to consider GDR issue. Subsequently, SEBI had advised BSE to examine the matter and submit the report to SEBI.  BSE had submitted a brief report on investigation conducted by the exchange covering the period July 26, 2004 to August 17, 2004 in case of Kolar Biotech Ltd. and Soundcraft Industries Ltd. and February 09, 2004 to August 10, 2004 in case of Adam Comsof Ltd. The findings of the investigations conducted by BSE were as given below :: After the declaration of the bonus issue by the Boar

Thus, it appeared that there was a transfer of holdings between entities connected to the company, by first offloading to the market and then acquisition by Cavelier Securit the market, who in turn offloaded the shares to other entities connected to the company.

41 Sh. Babu Basan – Director, Soundcraft Industries Ltd. 42 Sh. Vishnu Basan – Director, Soundcraft Industries Ltd 43 Sh. Ramesh Verma – Director, Soundcraft Industries Ltd 44 Sh. Raja Yadav – Director, 45 Sh. Umesh R. Khariwala – Director, Kolar Biotech Ltd. 46 Sh. Nooman Usmani – Director 47  *  Sh. Pushpa Mahadik  – Director, Kolar Biotech Ltd. 48  *   Sh. Prithvijit Debnath   – Director, Kolar Biotech Ltd. 49  *   Sh. Anil Bhaskar Tambe   – Director, Kolar Biotech Ltd. 50  *   Sh. Jayendra Pragji Thakkar   – Director, Kolar Biotech Ltd. 51 Sindhu Securities Pvt. Ltd. 52 Sh Nitin Namdev, Director, Structure Hsg. & Fin. P. Ltd. major selling client 53 Sh. Mahesh Ramdas Adsul, Director,Adsul Trading Pvt. Ltd.,  major selling client 54 Sh.Hiralal Yadav, Director, Million Investrade Ltd.  major selling client 55 Sh. Vithal Patil, Director, Mastermind Mercantile Co-op Ltd. , . major selling client 56 Sh  Janba Chowgule, Director, Albeli Trading Co. P. Ltd. ,  major selling client 57 Rajkumar C. Basantani, Member,  NSE 58 Kolar Sharex Pvt. Ltd., Member , BSE *  resigned on the next day of appointment in June 2003

Source: SecMarx — sebi:CO/57/ISD/09/2004. 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.