sebi:WTM/PS/24/IVD/ID-10/JAN/2013
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Directions issued in paragraphs 14.3, 14.4, 14.5, 14.6, 14.8 and 14.9 of the ex-parte Order dated December 28, 2011 read with Order dated February 15, 2012 confirmed and to continue in force till further directions; direction in paragraph 14.7 noted as already modified/vacated vide SAT order dated June 25, 2012.
Provisions invoked
- s. 19
Regulations
- Reg. 57(1)
- Reg. 8(2)(f)
Holding
SEBI confirmed the ad-interim ex-parte directions restraining OCAL, its directors, Fincare, Precise, ACML and its managing director and compliance officer from dealing in securities / undertaking fresh business / taking new merchant banking assignments, to continue till further orders.
Full text
Page 2 of 21 Herring Prospectus/Prospectus under objects of the issue viz., "Development of Portfolio Management Services" and "General Corporate Purposes" and the remaining `..7 crore towards purchase of corporate office. Investigation revealed that most of the funds out of `..20 crore were immediately transferred to five different entities based in Surat, Gujarat, whose business was not related to the securities market, instead was that of cloth trading, grocery etc. The said investigation also observed that the bank accounts of the five entities were opened during October 2011 and were closed immediately after the funds were transferred to various other entities. Further, the status of Fincare was observed to be “dormant” as per MCA website and Precise was mentioned as “defaulter” as per the same source.
Page 3 of 21 c. Buy, sell or deal in securities directly or indirectly, till further directions in that regard (this direction is contained in paragraph 14.5 of the Interim Order).
Page 4 of 21 (i) As regards the direction in paragraph 14.5 in the Interim Order, OCAL was permitted to deal in shares for the limited purpose of fulfilling their existing obligations of underwriting for minimum subscription as required under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 ("the ICDR Regulations") and do such other incidental acts in respect of those issues that were being dealt with by it as on December 28, 2011.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/PS/24/IVD/ID-10/JAN/2013. 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.