sebi:MO/130/IVD/10/04

SEBI · SEBI · A K Batra, Whole Time Member

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Facts / Headnote

Warning issued to the noticee

Provisions invoked

• s. 19

Regulations

• Reg. 13(4)
• Reg. 13

Parties

• M/s. Dynamic Superways & Exports Ltd.

Holding

The Whole Time Member found that DSEL, as Registrar to the Issue, violated Clause 1 and Clause 2 of the Code of Conduct in Schedule III of the SEBI (Registrar to an Issue and Share Transfer Agent) Regulations, 1993, by failing to obtain the specific distinctive numbers of shares under lock-in and thereby failing to exercise due care and diligence. A warning was issued to DSEL to be careful in future.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER REGULATION 13(4) OF SEBI (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY REGULATIONS), 2002. AGAINST M/S.DYNAMIC SUPERWAYS & EXPORTS LTD., REGISTRAR TO THE ISSUE, IN THE CASE OF VIKAS WSP LTD.

Securities and Exchange Board of India   Enquiry Officer or the recommendation made. 5. Therefore, in exercise of the powers conferred upon me by Section 19 of SEBI Act, 1992, read with Regulation 13(4) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, I hereby warn M/s. Dynamic Superways & Exports Ltd to be careful in future. I also direct them to note that any instances of violations or non-compliance of the Securities and Exchange Board of India Act and the Rules and Regulations, in future, shall be dealt with stringently.  A K Batra

It was alleged that DSEL had failed to inscribe the non transferability clause on the share certificates pertaining to the locked-in shares issued under the promoters’ quota, an act which facilitated the promoters in selling the shares under lock-in, prior to expiry of the lock-in period. SEBI investigations revealed that a total of 13,37,392 shares were transferred/sold before the expiry of the lock-in period. Hence, by not inscribing ‘not transferable’ on promoters quota shares under lock-in and thereby facilitating transfer of shares before the expiry of lock-in period, DSEL had allegedly violated the provisions of the SEBI (Disclosure and Investor Protection) Guidelines and SEBI (Registrar to an Issue and Share Transfer Agent) Regulations, 2002. I have noted the submission of DSEL that they were appointed as Registrar to the issue of VWL after the allotment of shares to the promoters. DSEL stated that the company had directly received the promoter quota applications and made allotments and that the company gave them the list of allottees under the promoter’s quota, without segregating the allottees under the category of three years lock in period and five years lock in period. DSEL further stated that the company’s registered office is in Rajasthan and they did not have any representative in Mumbai and hence the certificates had to be taken to Rajasthan for signatures. DSEL stated that in view of the above, they printed the share certificates at the instruction of the com

Source: SecMarx — sebi:MO/130/IVD/10/04. 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.