sebi:WTM/AB/EFD-1/DRA1/16/2020-21
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Charges established against promoters (Noticee nos. 15, 16, 17) and connected entities; Noticee nos. 1, 2, 3, 4, 6, 7, 9, 10, 11, 12, 13, 15, 16, 17, 19 and 20 restrained from accessing securities market for two years with holdings frozen; Noticee nos. 1, 2, 3, 4, 6, 8, 9, 10, 11, 12, 13 and 19 directed to disgorge illegal gains with interest; proceedings against Noticee nos. 8 and 14 abated due to death.
Provisions invoked
- s. 19
- s. 11(1)
- s. 11C(3)
- s. 28A
- s. 25
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(2)
- Reg. 3(a)
- Reg. 8
Holding
The promoters of Timbor Home Ltd. and connected entities were found to have violated Regulations 3(b), 4(1), 4(2)(f) and (r) of PFUTP Regulations, 2003 by devising a scheme to offload 29,82,750 shares through off-market transfers and bulk SMS buy recommendations to induce gullible investors, and were restrained from the securities market for two years and directed to disgorge illegal gains.
Full text
Final Order in the matter of Timbor Home Ltd. Page 2 of 78 1. The present proceedings have emanated from a show cause notice dated September 21, 2018 (hereinafter referred to as “SCN”) issued by Securities and Exchange Board of India (hereinafter referred to as “SEBI”) to the aforesaid 21 Noticees calling upon them to show cause as to why suitable directions, as may be appropriate, under Sections 11(1), 11(4) and 11B of Securities and Exchange Board of India (hereinafter referred to as “SEBI Act, 1992”) should not be issued against them. The SCN is issued to the Noticees pursuant to an investigation conducted by SEBI, into the scrip of Timbor Home Limited (hereinafter referred to as “the Company”/ “Timbor”), for the period from April 01, 2014 to May 30, 2015 (hereinafter referred to as “Investigation Period” or “IP”), following a complaint received in the SEBI Complaints Redressal System (hereinafter referred to as “SCORES”) which mentioned that complainant had received SMS with the recommendation of buying of shares of Timbor. The investigation was conducted with respect to 2 Patches of investigation period i.e. from April 01, 2014 to July 24, 2014 (Patch I) and from July 25, 2014 to May 30, 2015 (Patch II).
Final Order in the matter of Timbor Home Ltd. Page 3 of 78 4.1. A complaint was lodged in SCORES in the month of August 2014 by a recipient of an SMS which recommended buying of shares of Timbor. Thereafter SEBI initiated investigation into the trading in the scrip of Timbor. 4.2. The promoter and non-promoter shareholding of the Company during IP, as mentioned in the SCN, was observed as under:
Final Order in the matter of Timbor Home Ltd. Page 4 of 78 Non Promoter Holding 3218 1,43,23,84 7 97.0 7 3266 1,44,28, 950 97.7 8 3318 1,47,133,4 4 99.71 Deposito ry Receipts 0 0 0 0 0 0 0 0 0 Total Shares 3222 1,47,56,58 0 100 3269 1,47,56, 580 100 3320 1,47,56,58 0 100 (Source: bseindia.com) 4.3. It was observed from the above that the promoter’s shareholding reduced from 29.90% at quarter ended March 2014 to 2.93% at quarter ended December 2014. It was observed that the promoters holding reduced to 0.29% in quarter ended June
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/AB/EFD-1/DRA1/16/2020-21. 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.