sebi:WTM/PS/01/IVD/ID-08/APR/2016
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Facts / Headnote
SEBI directed to look into the exact figure of ill-gotten gains by Vital, its promoters/directors, preferential allottees and MFL and initiate disgorgement proceedings; claims of applicants to be taken on record and considered on disgorgement of ill-gotten gains
Provisions invoked
- s. 11
- s. 15
- s. 19
- s. 15H
Holding
SEBI was directed to quantify the ill-gotten gains made by Vital, its promoters/directors, preferential allottees and MFL arising from the fraudulent preferential allotment and misleading advertisements, and to initiate disgorgement proceedings against those who perpetrated fraud on the investors. The applicants' claims for compensation were to be taken on record and considered upon disgorgement of ill-gotten gains under the SEBI Act and regulations framed thereunder.
Full text
Page 2 of 17 3. Before proceeding further, it will be appropriate to discuss the facts in the matter of Vital as also noted in the SEBI order dated July 31, 2014. The same are also relevant for the trades of the applicants:
Page 3 of 17 Vijay Jhindal (promoter/ director of Vital and Master Finlease Pvt. Limited)] as advances, part of which in turn was transferred to certain preferential allottees. SEBI
Page 4 of 17 ending March 31, 2002, had showed reserves of just ₹4.68 crores. Thereby, the Company was not in a position to comply with the financial and legal requirements of buyback of the shares or the issue of bonus shares. The advertisement regarding the preferential allotment had represented increase in turnover, earnings per share, profit and FII shareholding. However, it was found that the income, profit after tax and earnings per share of Vital had decreased in the financial year 2001-02, compared to the previous year.
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Source: SecMarx — sebi:WTM/PS/01/IVD/ID-08/APR/2016. 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.