sebi:WTM/MPB/EFD-1-DRA-1/25/2018
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Facts / Headnote
Noticees held liable for violating Section 12A(a),(b),(c) of the SEBI Act and PFUTP Regulations; directed to disgorge ill-gotten gains of Rs. 6,00,11,512 jointly and severally, restrained from securities market for 10 years (with three named noticees subject to a separate 10-year restraint from date of order), and SMS Tech restrained from raising capital; directions against deceased Maheshchandra Shah contingent on service on legal representatives.
Provisions invoked
- s. 19
- s. 12A
- s. 21
- s. 264
- s. 306
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 3(a)
- Reg. 3(b)
- Reg. 77(1)
Holding
The preferential allotment of 3,00,00,000 shares by SMS Techsoft was fraudulent and without genuine consideration, and the noticees who participated in the scheme are liable for disgorgement of Rs. 6,00,11,512 jointly and severally along with market and association bans for 10 years. The cause of action for disgorgement survives the death of a wrongdoer and can be enforced against legal representatives.
Full text
Order in the matter of M/s SMS Techsoft (India) Limited Page 2 of 91 Sl. No. Name PAN 29 Kanubhai Narandas Thakkar ADZPT3418R 30 Vinit Kamleshkumar Shah BOIPS2506E 31 Karan Kirtibhai Shah BQYPS0082D 32 Vinod Jain AEDPJ4235P 33 Keval Kirtikumar Shah DFNPS6796L 34 Manjulaben Maheshchandra Chunilal Shah AFSPS6606M 35 Kirtikumar Rasiklal Shah AKQPS8463F 36 Mr. Rajesh Ranka ACUPR5573R
Order in the matter of M/s SMS Techsoft (India) Limited Page 3 of 91 selling or dealing in the shares of SMS Tech to ascertain whether there was any violation of the provisions of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’) and the Rules and Regulations made thereunder and possible violation of provision of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (“hereinafter referred to as ‘PFUTP Regulations’).
Order in the matter of M/s SMS Techsoft (India) Limited Page 4 of 91 Sl. No. Name PAN 23 Mr. Kanubhai Narandas Thakkar ADZPT3418R 24 Ms. Alakaben Kirtibhai Shah CPAPS2335R 25 Mr. Himadri Kamleshbhai Shah AZYPS5654H 26 Mr. Himanshu Prafulchandra Shah ANEPS9445A 27 Ms. Kaliyaben Himansu Shah BFQPS1462A 28 Mr. Karan Kirtibhai Shah BQYPS0082D 29 Mr. Keval Kirtikumar Shah DFNPS6796L 30 Mr. Kirtikumar Rasiklal Shah AKQPS8463F 31 Ms. Minaben Prafulbhai Shah COYPS9153J 32 Mr. Pruthvi Himanshu Shah DCAPS6011N 33 Mr. Vinit Kamleshkumar Shah BOIPS2506E 34 Ms. Nila Rajeshkumar Shah BSLPS2675B 35 Mr. Mahavirsingh N. Chauhan AQOPC6330R 36 Mr. Maheshchandra Chunilal Shah AIOPS3870Q
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-1/25/2018. 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.