sebi:SD/AO/15/2008
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Facts / Headnote
Penalty of Rs.50,000 imposed on the Noticee
Provisions invoked
- s. 15H
- s. 15J
- s. 15
Regulations
- Reg. 3
- Reg. 200
- Reg. 3(c)
Parties
- M/s. Bajrang Engineers Pvt. Ltd.
Holding
The Noticee, M/s. Bajrang Engineers Pvt. Ltd., violated Regulation 3(c) of the PFUTP Regulations, 2003 by off-loading shares of Shiva Cement Ltd. taking advantage of false, non-genuine and misleading corporate announcements, and is liable to penalty under Section 15HA of the SEBI Act, 1992.
Full text
Page 2 of 19 4. During the investigation period, the volume in the scrip increased sharply. It increased from 35,11,786 on November 1, 2004 to touch a high of 1,07,20,562 on November 24, 2004, an increase of 205%.
Page 3 of 19 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 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. Besides 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 Shivom Sales Ltd. It may be further noted that these shares were off-loaded during the period of investigation. Mrs. Neelam Agarwal is the common director of M/s. Shivom Sales Ltd 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. d) M/s. Aurora Fastners Pvt Ltd and the company Shiva Cement Ltd have the common telephone number i.e. 0661 2400168. e) The M/s. Daruka Steels Pvt Ltd and M/s. Daruka Sons Pvt Ltd have common address i.e. TT-5, Civil Township, Rourkela- 769 004. Both these companies are promoted by Mr. Binod Kumar Daruka. Mrs Ranju Daruka, Director of the M/s. Daruka Steels Pvt Ltd. is the wife of Mr Binod Kumar Daruka. f) Mrs. Ranju Daruka is the daughter of Hariram Tibrewal as per her PAN card. Mr Ramawtar Tibrewal is the son of Shri Hariram Tibrewal and partner of the M/s Tibrewal Chand & Co, Chartered Accountants.
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Source: SecMarx — sebi:SD/AO/15/2008. 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.