sebi:WTM/GA/MRD/DSA/8/8/05
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Facts / Headnote
Directed M/s Pragya Enterprises and its three partners to deposit proceeds of BFSL transactions in an escrow account with a nationalized bank and to take prior approval of SEBI for dealing in the account, with immediate effect.
Provisions invoked
- s. 11B
Parties
- M/s Pragya Enterprises
- Smt. Umah Agrawal
- Shri Viveek Agrawal
- Shri Satyanarayan Agarwal
Holding
SEBI directed M/s Pragya Enterprises and its partners Smt. Umah Agrawal, Shri Viveek Agrawal and Shri Satyanarayan Agarwal to deposit the proceeds from sale of 1,11,500 BFSL shares to DLF in an escrow account with a nationalized bank and to obtain prior SEBI approval for dealing in the account.
Full text
Siddhartha Agrawal, Satyanarayanan Vivek Kumar HUF, Prabhu Securities Limited and Bhoruka Engineering Ind. Ltd., etc. for the reason more elaborately stated therein.
3. It has now come to the notice of SEBI that in addition to the above mentioned 7 sellers (promoters of BFSL), M/s Pragya Enterprises, a partnership firm situated at 11/3, Nandi Durg Road, Bangalore 560 001 was also part of the promoter group of BFSL and the partners of M/s Pragya Enterprises namely, Smt. Umah Agrawal, Shri Viveek Agrawal and Shri Satyanarayan Agarwal have sold 1,11,500 shares of BFSL (amounting to 56% of the total 1,98,850 shares sold by the promoters of BFSL) to DLF in addition to the sales made by them in their individual capacities. These transactions were also executed at the uniform price of Rs 4,490/- per share. The shares were acquired by DLF. The partners of M/s Pragya Enterprises have been prima facie found to have gained unfairly.
4. Therefore, in the interest of orderly development of securities market, it is pertinent to pass an order against M/s Pragya Enterprises and its above named partners. Accordingly, I hereby direct M/s Pragya Enterprises and its partners viz. Smt. Umah Agrawal, Shri Viveek Agrawal and Shri Satyanarayan Agarwal under Section 11B read with 11(4) of SEBI Act, 1992 to deposit the proceeds of these transactions in the scrip of BFSL in an escrow account with a nationalized bank opened exclusively for this purpose and they are further directed to take prior approval of SEBI for dealing in this account.
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Source: SecMarx — sebi:WTM/GA/MRD/DSA/8/8/05. 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.