sebi:WTM/GA/12
Provisions invoked
- s. 11B
- s. 11(4)
- s. 11
- s. 55A
- s. 12
- s. 24
- s. 22
- s. 227
- s. 209A
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 11
- SEBI (PFUTP) Regulations, 2003 — 12
- SEBI (PFUTP) Regulations, 2003 — 6(a)
- SEBI (PFUTP) Regulations, 2003 — 6(d)
Parties
- Shri Kailash Chandra Agrawal
Holding
Shri Kailash Chandra Agrawal was held to be in collusion with Padmini and its promoters/directors in defrauding investors by furnishing false certificates dated June 30, 1999 and November 30, 1999 to obtain listing permission for preferential shares, and his plea to keep the Section 11B proceedings in abeyance pending Section 24 prosecution was rejected.
Full text
The funds received from the KP group and other buyers against the sale of shares were channelised back to the original allottees for making payment towards application/al money. After the original allottees had received money against their sale (as aforesaid), their cheques for payment against allotment were presented and realised by Padmini. 1.7 The details regarding the clearance of cheques of Delhi and Kolkata based allottees of the preferential shares of Padmini are mentioned below: a) Kolkata Based entities
(A) Certificate dated June 30, 1999 certifying that Padmini had already received Rs.8,52,50,000/- share money in respect of the above preferential allotment. The ext certificate are mentioned below:
(Regulation) Act, 1956, the Depositories Act, 1996 and the provisions of the Companies Act, 1956 which are administered by SEBI under section 55A thereof, the rules, reg guidelines etc. made under these Acts and the Listing Agreement} for an appropriate period. He was also asked to show cause as to why proceedings should not be init debarring him (in any capacity) from associating with the capital market related activities, dealing in securities, accessing the capital market and associating with an intermediaries in the capital market for an appropriate period. 2.2 It has been alleged that Shri Kailash Chandra Agrawal had indulged in fraud upon general investors by furnishing the false certificates for obtaining the listing approval for the allotted by Padmini on preferential basis. The annexure specifying the details of the clearance of cheques in respect of certain allottees of the said preferential shares w enclosed with the said show cause notice. 2.3 Shri Kailash Chandra Agrawal vide letter dated January 22, 2004 inter alia stated that the assignment was carried out in a professional and ethical manner maintaining the degree of standards, keeping in view all the necessary steps essentially needed to be followed. It was further stated that :- “the impugned certificates were issued by me after verifying/obtaining the following records / certificates from the management of Padmini: i) Computerized books of account containing account of banks and concerned allottees. ii) Rel
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