sebi:Order/SM/PP/2018-19/2491-2523
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Facts / Headnote
Penalty imposed jointly and severally on Noticees for non-compliance
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 2(1)(c)
- Reg. 77(1)
Holding
The 33 Noticees failed to comply with SEBI's Interim Order dated November 05, 2013 and Confirmatory Order dated May 07, 2015 to deposit Rs. 6,00,11,512/- in escrow, and are therefore liable under Section 15HB of the SEBI Act with a joint and several penalty of Rs. 50,00,000/-.
Full text
Page 2 of 19 In the matter of SMS Techsoft (India) Ltd. FACTS OF THE CASE 1. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) observed that during the period February - March 2013, several Short Text Messages (SMSs) were sent to the investors with predominantly buy recommendations that were made in the scrip of SMS Techsoft (India) Ltd (hereinafter referred to as ‘STL’/ ‘Company’). In view of the SMSs mentioning predominantly buy recommendations in the scrip of STL, SEBI conducted an examination in the matter and based on the observations contained therein, an interim order dated November 05, 2013 (followed by a corrigendum dated November 18, 2013) issued under the provisions of sections 11, 11(4) & 11 B of the Securities and Exchange Board of India Act, 1992 (hereafter referred to as ‘SEBI Act’) was passed against 38 persons/entities wherein, the said persons/entities named in the interim order were, inter alia, restrained from accessing the securities market and were also prohibited from buying, selling or dealing in the securities market, either directly or indirectly, in any manner whatsoever, till further directions.
Page 3 of 19 SEBI that the Company had made a further issue of 3,00,00,000 equity shares at Rs 10 per share on preferential allotment basis on March 15, 2012 to its promoters and also other persons/entities. It was further observed in the
Page 4 of 19 on March 15, 2012 and the number of shares allotted to the promoters/other persons/entities in the preferential allotment are as follows :- No. of % to total Sl. No. Name shares share capital- Allotted in the preferential allotment post Pref allotment 1 Jagadish Vital ( Promoter) 998590 2.85% 2 Akash Jagadish Vital ( Promoter) 451000 1.29% 3 Anita Srinivasabhatt Kadanthalai ( Promoter) 297000 0.85% 4 K Rajagopal 998000 2.85% 5 S Rajaganesh 997000 2.84% 6 Bafna S R 996000 2.84% 7 Chhaya Umeshchandra Trivedi 997500 2.85% 8 Meenaben Natubhai Thakkar 995000 2.84% 9 Mitesh Kanaiyalal Thakkar 997000 2.84% 10 Mukeshbhai Shantilal Thakkar 996000 2.8% 11 Mulchand Ganeshmal Jain 998000 2.85% 12 Natubhai Shantilal Thakkar 997000 2.84% 13 Navinchandra Kanubhai Thakkar 995000 2.84% 14 Suresh Nenmalji Malvi 997000 2.84% 15 Vaishali Natvarlal Thakkar 998500 2.85% 16 Vinod Jain 997000 2.84% 17 Dharmendra Rikhavchand Shah HUF 1045000 2.98% 18 Kanubhai Narandas Thakkar 997000 2.84% 19 Himanshu Prafulchandra Shah 995000 2.84% 20 Kaliyaben Himansu Shah 995000 2.84% 21 Alakaben Kirtibhai Shah 996000 2.84% 22 Karan Kirtibhai Shah 995000 2.84% 23 Keval Kirtikumar Shah 997500 2.85% 24 Kirtikumar Rasiklal Shah 995000 2.84% 25 Vinit Kamleshkumar Shah 994500 2.84% 26 Minaben Prafulbhai Shah 994000 2.84%
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