sebi:WTM/GA/28/ISD/11

SEBI · SEBI · 1996-08-03 · G Anantharaman, Whole-Time Member

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Facts / Headnote

Ad interim ex-parte directions issued restraining promoters, directors, connected clients and named brokers from dealing in Karuna Cables Ltd securities, restraining repeat-offender clients from dealing in any securities, restraining the company from issuing securities or altering capital structure, and directing depositories not to give effect to transfers, pending investigation and final order.

Provisions invoked

• s. 11B
• s. 19

Holding

Pending investigation and final order, the promoters, independent directors, connected clients and named brokers are restrained from dealing in Karuna Cables Ltd securities, certain repeat clients are restrained from dealing in any securities, and the company is restrained from issuing securities or altering its capital structure.

Full text

Grand Total 12771800 100 12771800 100 12771800 100 2.4  As per the data provided by the company, subsequent to the public issue in 1996, M/s Ceetee Trading and Leasing Pvt Ltd (Ceetee) was the major share with the holding of 11.09 lakh shares accounting around 5% of the total listed capital. The scrutiny of the DP Account Opening Form of Ceetee revealed th Mahendra C Shah and Ms Hasu Mahendra Shah were the first directors of the company M/s Ceetee Trading and Leasing Pvt Ltd. Subsequently, on Ju 2003, the company authorized its directors Ms Hasu M Shah and Shri Sanjay B Shah to operate the Depository account. This clearly indicates that M/s Trading and Leasing Pvt Ltd is a promoter entity and therefore, their shareholding should be shown under the Promotor’s Holding category. Howev quarterly shareholding report to BSE for the quarter ended March 2004 shows the holding of M/s Ceetee Trading and Leasing Pvt Ltd (479500 shares) a Sanjay B Shah (373900 shares) in the non promoter category. From the shareholding pattern from March 2004 to September 2005, it is observed that t no change in promoter’s holding; however, by not disclosing the holding of M/s M/s Ceetee Trading and Leasing Pvt Ltd and Shri Sanjay B Shah promoter’s category the company has provided inaccurate disclosures with regard to the promoter’s holding to the investors. It is suspected that there co many more entities which are connected to the promoters and acting in concert with promoters and have not been correc

Bank Name Account No Date Amount (Rs) Bank of Baroda 1421 17-Dec-04 400,000.00 Punjab & Sindh Bank 951 22-Dec-04 20,000.00 Punjab & Sindh Bank 951 22-Dec-04 25,000.00 Total (Qtr end Dec 04)

Bank Name Account No Date Amount (Rs) Punjab & Sindh Bank 951 4-Mar-05 2,246.00 Punjab & Sindh Bank 951 4-Mar-05 21,090.00 Punjab & Sindh Bank 951 4-Mar-05 6,296.00 Punjab & Sindh Bank 951 4-Mar-05 1,168.00 Punjab & Sindh Bank 951 4-Mar-05 13,464.00 Punjab & Sindh Bank 951 4-Mar-05 3,769.00 Punjab & Sindh Bank 951 4-Mar-05 7,502.00 Punjab & Sindh Bank 951 7-Mar-05 125,000.00 Punjab & Sindh Bank 951 12-Mar-05 200,000.00 HDFC Bank 602020001292 16-Mar-05 300,000.00 Punjab & Sindh Bank 951 16-Mar-05 17,600.00 Punjab & Sindh Bank 951 23-Mar-05 120,000.00 Punjab & Sindh Bank 951 23-Mar-05 120,000.00 Punjab & Sindh Bank 951 28-Mar-05 20,750.00 Punjab & Sindh Bank 951 28-Mar-05 7,500.00 Punjab & Sindh Bank 951 28-Mar-05 16,750.00 Punjab & Sindh Bank 951 28-Mar-05 39,000.00 Punjab & Sindh Bank 951 29-Mar-05 100,000.00 Punjab & Sindh Bank 951 29-Mar-05 127,000.00 Punjab & Sindh Bank 951 29-Mar-05 127,000.00 Punjab & Sindh Bank 951 30-Mar-05 200,000.00 Punjab & Sindh Bank 951 30-Mar-05 200,000.00 Punjab & Sindh Bank 951 31-Mar-05 125,000.00 Punjab & Sindh Bank 951 31-Mar-05 150,000.00 Punjab & Sindh Bank 951 31-Mar-05 100,000.00 Punjab & Sindh Bank 951 31-Mar-05 125,000.00 Punjab & Sindh Bank 951 31-Mar-05 73,000.00 Punjab & Sindh Bank 951 31-Mar-05 73,000.00 Total (Qtr end Mar 05)

Source: SecMarx — sebi:WTM/GA/28/ISD/11. 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.