sebi:O/239/ISD/03/2004

SEBI · SEBI · 1988-08-20 · G. N. Bajpai, Chairman

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Facts / Headnote

Shri Bharat N. Vaishnawa restrained from associating with any corporate body in 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. 138
• s. 56

Parties

• Shri Bharat N. Vaishnawa

Holding

Shri Bharat N. Vaishnawa, being a director at the relevant time, was held responsible for the company's prospectus irregularities and was restrained from associating with any corporate body in accessing the securities market and prohibited from buying, selling or dealing in securities for five years with immediate effect.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ DIRECTIONS UNDER SECTION 11B READ WITH SECTION 11 OF SECURITIES AND EXCHANGE BOARD OF INDIA, ACT, 1992 AGAINST SHRI BHARAT N. VAISHNAWA IN THE MATTER OF TRIDENT STEELS LTD

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

This direction shall come into force with immediate effect. G. N BAJPAI Date: March 31, 2004 11. I am not convinced with the reply of Shri Bharat N. Vaishnawa and find that Shri Bharat N. Vaishnawa being a director of the company at the relevant point of time is also responsible for the acts, commissions and omissions of the company as mentioned 1. 2.

Source: SecMarx — sebi:O/239/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.