sebi:WTM/KMA/IVD/409/07/2011
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Facts / Headnote
Accurate Exports Limited and its directors Mr. Dinesh Sharma and Mr. Hemant Gupta restrained from accessing the securities market for two months; Sanidhya Holiday Resorts and Estate Development Limited, Mr. Pradeep Kapoor, Mrs. Meeta Kapoor and Mr. Vijaykumar Dinanath Khanduja restrained for one month; proceedings against Mr. Dinanath Khanduja disposed of without directions.
Provisions invoked
- s. 19
- s. 372A
- s. 11C(6)
- s. 81
Regulations
- Reg. 11
- Reg. 6(a)
Parties
- Accurate Exports Limited
- Mr. Dinesh Sharma
- Mr. Hemant Gupta
- Sanidhya Holiday Resorts and Estate Development Limited
- Mr. Pradeep Kapoor
- Mrs. Meeta Kapoor
- Mr. Vijaykumar Dinanath Khanduja
- Mr. Dinanath Khanduja
Holding
Accurate Exports Limited and its directors Mr. Dinesh Sharma and Mr. Hemant Gupta were held liable for violating Regulation 6(a) of the PFUTP Regulations for fraudulently allotting and dematerializing shares in excess of authorized capital without shareholder approval, and were restrained from the securities market for two months. Sanidhya Resorts, Mr. Pradeep Kapoor, Mrs. Meeta Kapoor and Mr. Vijaykumar Dinanath Khanduja were also held guilty of contravening Regulation 6(a) and restrained for one month, while proceedings against Mr. Dinanath Khanduja were disposed of without directions.
Full text
Page 2 of 13 2. The investigation conducted by SEBI in respect of the buying, selling and dealing in the shares of the Company observed that during the period from January 1, 2001 to March 31, 2002, the price of the scrip ranged between `2 to `0.10 at a time when substantial quantity of shares of the Company was offloaded through select stock brokers. It was further observed that the Company had issued two different notices dated April 3, 2001 signed by the Managing Director, Mr. Dinesh Sharma, calling for an Extra-Ordinary General Meeting (EGM) on April 30, 2001. The following proposals were made in the first notice:
Page 3 of 13 the said EGM was regarding the shifting of office to Vadodara. Inspite of the resolution not being approved, on May 11, 2001 and September 11, 2001, the Company had made a listing application to ASE for listing of 6,00,00,000 equity shares and 7,50,00,000 equity shares of `10 each respectively. Subsequently, vide letters dated September 19, 2001 and September 24, 2001, the Company had written to ASE informing that the said allotments were null and void as various regulatory compliances under the SEBI Act and the Companies Act 1956 had not been met. However, substantial quantity of shares had been dematerialised and transferred to various entities during the period between the preferential allotment and the application for listing. The shares issued by the Company were dematerialized by the allottees who then transferred those shares to certain other entities and they in turn, transferred the shares to other set of entities who offloaded the same in the market, without the shares being listed on the stock exchange. Thus, it was alleged that the Company had fraudulently issued and dematerialized shares over and above its authorized capital of 2,10,00,000 shares.
Page 4 of 13 Though, they had requested to grant eight weeks time to file consent applications, they had failed to file consent application, as informed to SEBI. Therefore, another opportunity of personal hearing was granted on July 15,
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Source: SecMarx — sebi:WTM/KMA/IVD/409/07/2011. 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.