sebi:O/40/IES/05/2003/IES
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Facts / Headnote
Noticee found to have aided false market; directed to disassociate from capital market related activities and not to access capital market for five years
Provisions invoked
- s. 4(3)
- s. 11
Parties
- Shri Sanjay Chakraborty
Holding
Shri Sanjay Chakraborty aided and abetted creation of a false market in Hitek scrip and hindered true price discovery, and was therefore directed to disassociate from capital market activities and not access the capital market for five years.
Full text
shares amounted to 99.09% of the total subscription. M/s.Healol Finance Pvt. Ltd. was one of the largest shareholder of the company holding 16,50,300 shares. Shri Sanjay Chakraborty is the Director of M/s. Healol Finance Pvt. Ltd. The following are the nine applicants of the top 100 applicants : Sr. No. Name of the applicant Shares Applied for 1. Y. Srinivas 2,50,000 2. Y. Venkatarammanna 2,50,000 3. T.P. Dangi 16,00,000 4. S.K. Doshi 2,50,000 5. K.G. Doshi 2,50,000 6. D.K. Doshi 2,30,000
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8. Vinod R. Rana 2,50,000 9. G.A. Jain 25,00,000 4.3 The public issue was closed on earliest closing date on March 24, 1994 inspite of getting less than 0.5% subscription. Magadh Stock Exchange vide its letter dated June 6, 1994 approved compliance of listing formalities within 120 days from the closure of subscription, keeping in view the under subscription of the issue. None of the shares allotted to the nine applicants mentioned above were delivered to them by the Registrar to the issue. The shares allotted to these persons (56,30,000 shares) were collected by one Shri Ramprasad Sinha, an employee of Hitek. All the above nine applicants had given authority letter authorizing Shri Ramprasad Sinha to collect the share certificate from the Registrar. Further, all the above nine applicants had given irrevocable Power of Attorney in favour of Shri Ramprasad Sinha which were registered with the company. 4.4 Shri Ramprasad Sinha reported loss of 19,00,000 shares to the company. These shares were originally in the name of Shri G.A. Jain, Shri D.S.Jain and Shri T.P. Dangi and were from the lot of shares, whereby these applicants had given irrevocable Power of Attorney to Shri R.P. Sinha. The break up of the 19,00,000 shares in the name of original owners is as follows: Name Address Folio Quantity G.A. Jain M.G. Road, Opp. Rlwy Station, Santacruz(W), Bombay 400 054 G 0225 14,50,000 Dharmesh S. Jain B 13/4, Mayur Pankh D. Road, Mulund, 031 50,000
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Source: SecMarx — sebi:O/40/IES/05/2003/IES. 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.