sebi:SD/AO/14/2008
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Facts / Headnote
Violation of Regulation 3(c) of PFUTP Regulations, 2003 established; penalty imposed
Provisions invoked
- s. 15H
- s. 15J
- s. 15
Regulations
- Reg. 3
- Reg. 200
- Reg. 3(c)
Parties
- M/s. Shivom Sales Ltd.
Holding
The Noticee, M/s. Shivom Sales Ltd., violated Regulation 3(c) of PFUTP Regulations, 2003 by employing a device, scheme or artifice to defraud in connection with dealing in securities, in conjunction with non-genuine, false and misleading corporate announcements made by Shiva Cement Ltd (SCL). A penalty of Rs. 50,000 was imposed on the Noticee under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 19 3. At BSE, during the period of investigation, the scrip opened at Rs. 4.00 on November 1, 2004 and touched a high of Rs. 5.14 on November 08, 2004, an increase of 28.5%.
Page 3 of 19 2004 to consider, discuss and approve the issue of equity shares on Rights basis to the shareholders. And on December 7, 2004 SCL announced that its board approved the proposal for raising fresh equity share capital by offering equity shares of Rs.2/- each at a premium up to Rs.3/- per equity share to its existing shareholders and proposal for increase in authorized share capital from Rs.200 million to Rs.280 million (100 to 140 million equity shares of Rs.2/- each aggregating to Rs.280 million).
Page 4 of 19 Pvt Ltd is controlled by Mr. Banwarilal Gupta, the younger brother of Mr. R.P.Gupta, MD of SCL. c) It is observed from the Investigation Report that M/s Starpoint Management Pvt Ltd had bought 15,00,000 shares in off-market from the M/s. Shivom Sales Ltd on 28th January 2004 for a total consideration of Rs. 27 lakhs. The payment for these shares was made in staggered manner till December, 2004. Further it is also stated in Investigation Report that they have made a payment of Rs. 7 lakhs in the shape of sale of 14,000 equity shares of Nihal Fiscal Service Pvt. Ltd. From this it appears that Starpoint was having relationship with the Noticee. It may be further noted that these shares were off-loaded during the period of investigation. Mrs. Neelam Agarwal is the common director of the Noticee and M/s Swaraj Enterprise Pvt Ltd. Neelam Agrawal is the introducer to the client M/s Aurora Fastners Pvt Ltd. Santosh Agarwalla (Promoter of M/s Swaraj Enterprise Pvt Ltd) is husband of Neelam Agarwal.
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Source: SecMarx — sebi:SD/AO/14/2008. 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.