sebi:WTM/KMA/IVD/130/09/2009
Facts / Headnote
Prohibited Austral Coke and Projects Limited from raising any further capital in any manner directly or indirectly till further orders with immediate effect; ordered investigation into dealing in securities of the company
Provisions invoked
- s. 19
- s. 133
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 11
- SEBI (PFUTP) Regulations, 2003 — 3
- SEBI (PFUTP) Regulations, 2003 — 4
Parties
- Austral Coke and Projects Limited
Holding
SEBI prohibited Austral Coke and Projects Limited from raising any further capital in any manner, directly or indirectly, whatsoever till further orders with immediate effect, and ordered an investigation into the buying, selling or otherwise dealing in the securities of the company.
Full text
Page 2 of 4 d) Mr. Ajitkumar Jindal, in his statement recorded under Section 133 A of the Income Tax Act, 1961, admitted having provided bogus bills for the purchase of raw material as well as plant and machinery to the company. e) such purchases identified so far by the Income Tax Department totaled up to Rs.553 crores. f) the company had also shown sales of around Rs.495 crores to the concerns floated by Mr. Ajitkumar Jindal and to other concerns having the same address as the concerns of Mr. Ajitkumar Jindal, which apparently were bogus. g) the company had raised funds through an Initial Public Offering (IPO) in the year 2008. That a part of the funds raised through the said IPO were shown in the books of the company as utilized towards purchase of capital goods from the concerns of Mr. Ajitkumar Jindal, which were found to be bogus and as stated above.
Page 3 of 4 been made against the company for making fictitious entries in its accounts, procuring bogus bills etc. 5. I note that the Bombay Stock Exchange Limited has been intimated (on August 24, 2009) that a meeting of the Board of Directors of the company will be held on September 03, 2009, inter alia, to discuss the raising of funds through Qualified Institutional Placement up to US$ 200 Million; to consider interim dividend for F.Y. 2009-10; to consider any bonus shares and increase in authorized capital. Further, from a newspaper report (The Economic Times, dated August 25, 2009), I find that the company has said “its board will meet on September 3 to consider raising $200 million (nearly Rs 970.22 crore) by private placement of shares with qualified institutional buyers. The board would also consider bonus issue and to increase the authorized share capital of the company”.
Page 4 of 4 light of the fact that the company has convened a board meeting for the purposes of considering further issue of shares, SEBI as the regulator of the securities market is satisfied that it is necessary to immediately intervene to prevent further activities which are detrimental to the interests of the shareholders of the company and the integrity of the securities market.
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Source: SecMarx — sebi:WTM/KMA/IVD/130/09/2009. 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.