sebi:WTM/PS/06/CFD/APR/2015
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Facts / Headnote
Directions issued vide interim order dated June 04, 2013 revoked with immediate effect; matter referred for adjudication proceedings under sections 23E and 23H of the SCRA
Provisions invoked
- s. 19
- s. 21
- s. 22
- s. 23I
- s. 32
- s. 12A
Parties
- Ganga Papers India Limited (formerly Kasat Paper & Pulp Limited)
- Directors of Ganga Papers India Limited
- Promoters of Ganga Papers India Limited
- Promoter group of Ganga Papers India Limited
Holding
The Company having achieved minimum public shareholding compliance on November 12, 2014, the interim directions dated June 04, 2013 against the Company, its directors, promoters and promoter group are revoked, but the admitted non-compliance as on the due date of June 03, 2013 is referred for adjudication under sections 23E and 23H of the SCRA.
Full text
Page 2 of 8 e. Initially the Company was engaged in the business of manufacture of different types of kraft paper including special quality kraft paper and high grade kraft paper. Kraft paper is used for the manufacture of corrugated cartons and boxes. f. The Company increased its production capacities during 1991 and 1993. The Company desired to set-up manufacturing facilities for the manufacture of 10,000 tpa of newsprint and 500 tpa of white writing/printing paper and a co-generation plant of 1.4 MW capactity. In
Page 3 of 8 Company and ensuring its revival as approved by the BIFR vide Order dated October 31, 2006. n. As per the pre-BIFR Order shareholding pattern, the promoters and promoter group held 21,02,560 shares constituting 39.96%. o. After forfeiture, reduction and consolidation of capital in terms of revival scheme, the share capital of the Company consisted of 2,88,886 equity shares of Rs.10/- each aggregating to Rs.28,88,860/- as against the pre-reduction capital of Rs.2,88,88,600/-. p. As per the BIFR Order, the Company had allotted 5,00,000 equity shares of Rs.10/- each to Stressed Asset Stabilization Fund on December 02, 2006 and 1,00,00,000 equity shares of Rs.10/- each to promoters on January 15, 2007. Consequently, the shareholding of the promoter and promoter group had increased to 94.64%. q. The Company had initiated and concluded all the necessary steps essential to effect the BIFR scheme. r. There was no trading of the shares since December 2001. The trading was suspended by BSE since 2004 due to non-compliance with listing agreement. However, there has been delay in complying with the norms of BSE for revoking the suspension. The Company is presently in the process of implementing/paying all the statutory dues as applicable to BSE. s. Once suspension is revoked, the Company would adhere to and achieve the compulsory minimum public shareholding norms. t. The Company had continuously made efforts to list all the equity shares issued post BIFR scheme and the tradin
Page 4 of 8 4. Thereafter, vide letter dated January 03, 2014, the Company, while stating that available methods for complying with MPS norms were not viable due to market conditions and sought relief afforded by SEBI vide Order dated November 22, 2013 in the matter of Vaarad Venture Limited.
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Source: SecMarx — sebi:WTM/PS/06/CFD/APR/2015. 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.