sebi:Order/EAD/KS/MG/2018-19/2400
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Facts / Headnote
Penalty imposed on the Noticee for violating SEBI interim and confirmatory orders prohibiting sale of shares by promoters of non-compliant companies.
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 15F
- s. 21
Regulations
- Reg. 29(2)
Parties
- Shreyas Dinesh Sharma
Holding
The Noticee, Shreyas Dinesh Sharma, violated SEBI's interim order dated June 04, 2013 and confirmatory order dated January 11, 2016 by selling shares of Kesar Petro Products Ltd (KPL) during April 2015 to January 2016 without complying with the prescribed methods for minimum public shareholding compliance. A penalty of Rs. 2,00,000 was imposed under Section 15HB of the SEBI Act.
Full text
Page 2 of 14 purpose of complying with minimum public shareholding requirement till such time these companies comply with minimum public shareholding requirement.“
Page 3 of 14 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 6. Show Cause Notice dated July 10, 2018 (hereinafter referred to as ‘SCN’) was issued to the Noticee under the provisions of Rule 4(1) of the AO Rules, to show cause as to why an inquiry should not be held against the Noticee and why
Page 4 of 14 i. At the outset and without prejudice to anything stated hereinafter, I deny all the allegations and charges leveled against me in the said SCN; nothing contained in the said SCN may be deemed to have been admitted by me merely on account of non-traverse. ii. Kesar was a public company incorporated in the year 1990 under the provisions of the Companies Act, 1956 and inter alia, engaged in the business of manufacturing Bis-Phenol A. The equity shares of Kesar are listed on BSE. iii. For various reasons, Kesar was forced to suspend its manufacturing operations sometime in the month of November 2004 and on September 23, 2005, BIFR declared Kesar as a sick undertaking. Thereafter, vide an Order dated April 28, 2006, BIFR held that there was no viable rehabilitation proposal and hence ordered Kesar to be wound up. At this point of time Kesar had approximately 33000 shareholders and subsequently, the trading in its shares was suspended by BSE somewhere in September 2007. iv. On June 29, 2006 Shreyas Intermediates Limited (SIL), a public Company promoted by Mr. Dinesh Sharma (present Promoter) submitted a proposal to BIFR to take over Kesar. BIFR, vide its Order dated August 17,2007 accepted the proposal of SIL and ordered a scheme of rehabilitation of Kesar by sanctioning a takeover by SILvide Order dated 17.08.2007, a copy whereof is annexed as Annexure 1. As a result of takeover of Kesar and subsequent efforts of the present promoter, Kesar was eventually revived an
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Source: SecMarx — sebi:Order/EAD/KS/MG/2018-19/2400. 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.