sebi:WTM/GM/EFD/66/2018
Facts / Headnote
Shivgurunathan restrained for three years and Nirmal Kotecha restrained for one year from buying, selling or dealing in securities in any manner or accessing the securities market and from being a director of any listed company
Provisions invoked
- s. 19
- s. 12A
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 11
- SEBI (PFUTP) Regulations, 2003 — 3(b)
- SEBI (PFUTP) Regulations, 2003 — 3(c)
- SEBI (PFUTP) Regulations, 2003 — 3(d)
- SEBI (PFUTP) Regulations, 2003 — 4(1)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(a)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(e)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(f)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(k)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(r)
Parties
- Shivgurunathan
- Nirmal Kotecha
Holding
Shivgurunathan, Vice President Finance and CFO, and Nirmal Kotecha, non-executive director and major shareholder, were held guilty of fraudulent fabrication of accounts and false disclosures by PSTL in violation of PFUTP Regulations and restrained from the securities market and from listed-company directorship for three years and one year respectively.
Full text
___________________________________________________________________________ Order in the matter of PSTL Page 2 of 9 3. The SCN issued to Shivgurunathan could not be served at his last known address at “G1, 1252, Pushp Raag, 19th Main Road, Anna Nagar (W), Chennai, 600040” and in view of the same, the SCN was published on the SEBI website under the head “Enforcement- Unserved Summons / Notices”. Shivgurunathan failed to submit any reply to the SCN. As the first hearing notice sent to Shivgurunathan was undelivered, another opportunity of hearing was granted to Shivgurunathan on March 15, 2018 by newspaper publication. Neither any reply was received nor did the noticee Shivgurunathan appear on March 15, 2018. In view of the same, I am convinced that sufficient opportunities have been granted to Shivgurunathan and that he is not keen to avail any opportunity of hearing in this regard. I further note that the noticee has not even filed any written reply/submission to the SCN. In view of these facts and circumstances, I deem it appropriate to decide the matter ex-parte requesting him on the basis of material available on record.
___________________________________________________________________________ Order in the matter of PSTL Page 3 of 9 secretaries/ any other employees in any capacity except as the director of the company. i) After resigning from the board of the company on November 17, 2008, he did not have any link / connection with the company or any of its directors. j) He had not gained anything from the activities of the company either directly or indirectly.
___________________________________________________________________________ Order in the matter of PSTL Page 4 of 9 Noticee was an investor dealing in the finance and securities markets for the last sixteen years. He had invested in both listed and un-listed companies. In the past, he had funded various un-listed companies by investing in their equity, thus participating and supporting the companies with real potential to grow their business. He had invested as a private equity investor in PSTL. His association as .an investor with the Company initiated before its listing. He had invested substantial funds in the PSTL and even after PSTL came out with an IPO in 2007, he wanted to continue holding the shares held by him and did not want to sell the shares to any other person. To give representation to his shareholding, the Noticee was appointed as a non- executive director of PSTL and his role in PSTL was of non-independent non-executive director with a view to keep himself aware about his investment and the Company in which he has made an investment. Accordingly, he was never vested with any authority or powers by the Board of Directors of the Company and did not ever have any role in day to day affairs of PSTL. Later during the year, due to major global financial crisis, the stock markets became weak worldwide and the noticee being an active market participant and as all market participant review their investment strategy from time to time, he had decided to reduce h
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Source: SecMarx — sebi:WTM/GM/EFD/66/2018. 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.