sebi:KBL/ABB/AO/DRK/AS/EAD-3/109/09-12/2010
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Facts / Headnote
Penalty imposed on the noticee under Section 15HA of the SEBI Act, 1992
Provisions invoked
- s. 15
- s. 11B
- s. 15H
- s. 15J
Regulations
- Reg. 3
Parties
- Shri Aspi B Bhesania
Holding
The noticee, Shri Aspi B Bhesania, Additional Director of Kolar Biotech Ltd., was held liable for violating Regulations 3, 4(1), 4(2)(f), 4(2)(k), 4(2)(r) of the SEBI PFUTP Regulations, 2003 for his role in issuing false and misleading advertisements concerning KBL. A penalty of Rs. 25,00,000/- was imposed under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 16 2. Further, SEBI, vide its interim order dated September 30, 2004, had issued 11B directions restraining 58 entities who are either promoters, directors, major shareholders of KBL, Adam Comsof Ltd. (ACL) and Soundcraft Industries Ltd. [hereinafter referred to as SIL] or major sellers in the said scrips and the entities related to them, from buying, selling or dealing in any other manner in the shares of KBL, ACL and SIL till the investigations are completed. Shri Aspi B. Bhesania was also one of the persons against whom the directions under Section 11B was issued.
Page 3 of 16 5. The trading in the shares of KBL is suspended at the stock exchanges with effect from October 11, 2004 for non-compliance of various clauses of listing agreement. Subsequent to the public issue, company had on February 28, 2002 split the shares from Rs 10/- per share to Re 1/- per share. The share of KBL was admitted on National Securities Depository Ltd. [hereinafter referred to as ‘NSDL’] on March 4, 1999 and on February 4, 2000 on Central Depository Services (India) Ltd. [hereinafter referred to as ‘CDSL’].
Page 4 of 16 office of KBL i.e. Narayan Building, 2nd Floor, 23, Lakhamshi Napoo Road, Dadar (E), Mumbai – 400 014 was sealed by the Office of the Recovery and Sales Officer of the Co-operative Department, Mumbai (Government of Maharastra). However, it was observed that KBL vide its letter dated July 29, 2004 had intimated BSE that it would convene a board meeting on August 03, 2004, for considering various proposals interalia including considering issue of bonus shares. The letter was signed by Shri Vinod Hingorani, chairman of KBL. Again, KBL vide an unsigned letter dated August 03, 2004, sent to BSE with a copy of the audited results as on June 30, 2004 stated that board had decided to declare bonus shares in the ratio of 2:1, which was duly approved by the Board of Directors in their meeting held on August 03, 2004, at the registered office of the company and simultaneously issued an advertisement on the August 04, 2004 in Economic Times (ET) publishing the audited financial results for the quarter ended June 30, 2004.
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Source: SecMarx — sebi:KBL/ABB/AO/DRK/AS/EAD-3/109/09-12/2010. 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.