sebi:WTM/PS/28/IVD/ID-06/JULY/10
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Restrained Shri Rajesh Ranka from buying, selling or dealing in securities and from associating in securities market in any manner whatsoever for a period of 2 years.
Provisions invoked
- s. 12A
- s. 81
Regulations
- Reg. 11
- Reg. 3
- Reg. 3(a)
Parties
- Rajesh Ranka
Holding
The noticee Rajesh Ranka was found to have violated Section 12A of the SEBI Act, 1992 read with the PFUTP Regulations, 1995 and 2003, by participating in a scheme of manipulation in the scrip of Softrak Technology Exports Ltd. (STEL), and was restrained from buying, selling or dealing in securities and from associating in the securities market for a period of 2 years.
Full text
Page 2 of 11 2. Investigations, inter alia, revealed that STEL, which had a paid up capital of Rs.3,60,00,000 comprising 36 lakh shares, issued 3 crore additional shares to certain entities, allegedly including several fictitious entities for non-cash considerations. These shares were swapped for the shares of two overvalued private companies, namely M/s. Cybersoft Infocomm Ltd. (hereinafter referred to as ‘Cybersoft’) and M/s. Pushpam Infotech Ltd (hereinafter referred to as ‘Pushpam’). Further, it was alleged that several fictitious demat accounts were opened using forged and fictitious documents. The shares of STEL so allotted were fraudulently dematerialized using an in-principle listing approval from ASE. Following this, the said shares were routed through various entities including Shri Rajesh Ranka, the noticee herein, and finally offloaded using the BSE platform, even though BSE had refused listing permission for these additional shares.
Page 3 of 11 However, since the noticee did not get the franchise he asked that the amount paid by him be returned. Accordingly, Rajesh Ranka was given shares of STEL by Sunil Gaglani. The money received from the sale of shares would be used to make the aforesaid repayment to the noticee. The noticee submitted that he had no further knowledge of the allegations made in the SCN and had acted in good faith to get repayment of the aforesaid amount.
Page 4 of 11 allotted to shareholders of M/s. Cybersoft Infocomm Ltd. (hereinafter referred to as ‘Cybersoft’) on December 11, 2001, and
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Source: SecMarx — sebi:WTM/PS/28/IVD/ID-06/JULY/10. 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.