sebi:WTM/PS/125/EFD/DEC/2015
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Facts / Headnote
Directions issued: (a) debarment from accessing and dealing in the securities market for 10 years; (b) public announcement under Takeover Regulations within 45 days with consideration plus 10% per annum interest from November 1999 to eligible shareholders; ex-parte disposal of SCNs against non-appearing noticees.
Provisions invoked
- s. 11
- s. 19
- s. 19(2)
Regulations
- Reg. 11
- Reg. 3
- Reg. 44
- Reg. 13
- Reg. 14(1)
- Reg. 10
- Reg. 11(2)
Holding
The noticees were found to have contravened the PFUTP Regulations, 1995 and the Takeover Regulations, 1997 by fraudulently subscribing the OFS, cornering over 95% of the floating stock, manipulating share price/volumes, and acquiring 22% of shares post-listing without making a required public announcement. Directions were issued including 10-year debarment from the securities market and a mandatory public announcement within 45 days with consideration plus 10% interest.
Full text
Page 2 of 32 1. Home Trade Limited (hereinafter referred to as "Home Trade" or "the Company") is a company incorporated under the Companies Act, 1956. The company was earlier known as Euro Asian Securities Limited. The shares of the Company were listed on the erstwhile Pune Stock Exchange Limited ("PSE") and the erstwhile Bangalore Stock Exchange Limited ("BgSE").
Page 3 of 32 4. Pursuant to the OFS, the shares of Home Trade were listed on the PSE and the BgSE. The trading in the shares of the Company commenced from November 15, 1999.
Page 4 of 32 (i) The SCN inter alia alleged that Home Trade and its promoters/directors /key management personnel together cornered over 95% of the total floating stock in the scrip during the OFS and subsequently transacted in the scrip with a view to establish an artificial market and manipulate the share price. It was alleged that the transactions of the promoters/directors/key management personnel and related entities in the shares of Home Trade were instrumental in establishing artificial price and artificial volumes in the scrip with the intention to pledge those shares in the names of the promoters/directors and associate/connected companies of Home Trade with the banks in order to receive funds from those banks.
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Source: SecMarx — sebi:WTM/PS/125/EFD/DEC/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.