sebi:WTM/PS/30/IVD/ID-06/JULY/2010
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Facts / Headnote
Restrained Softrak Technology Exports Ltd. and Sunil Gaglani from buying, selling or dealing in securities and from associating with the securities market in any manner whatsoever for a period of 2 years, with immediate effect
Provisions invoked
- s. 12A
- s. 81
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Softrak Technology Exports Ltd.
- Sunil Gaglani
Holding
Softrak Technology Exports Ltd. and its Managing Director Sunil Gaglani were held to have violated Section 12A of the SEBI Act and the PFUTP/FUTP Regulations by allotting and offloading 3 crore unlisted shares through fictitious entities and were restrained from the securities market for 2 years.
Full text
Page 2 of 13 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 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 fabricated documents. The shares of STEL so allotted were fraudulently dematerialized using an in-principle listing approval from ASE. The Managing Director of STEL, Shri Sunil Gaglani had represented the company before the exchanges for this purpose. Following this, the said shares were routed through various entities and finally offloaded using the BSE platform, even though BSE had refused listing permission for these additional shares.
Page 3 of 13 Ahmedabad, to reply to the said Show Cause Notice. The team from the regional office went to serve the reminder and visited Sunil Gaglani’s address. The team met with an individual who identified himself as Sunil Gaglani’s father. The said individual refused to accept the reminder and objected to the SEBI team affixing the reminder on the premises. The reminder was also not delivered to STEL. Following this a notice was published in the Gujarat Samachar and Hindustan Times for Undelivered Show Cause Notice, inter alia, for STEL on August 9, 2009 and August 13, 2009 respectively. The noticee was informed that they should reply within fifteen days, failing which the matter would be decided ex-parte.
Page 4 of 13 ii. A resolution under Section 81(1A) of the Companies Act, 1956 was passed by the company on January 31, 2002, by which 2,00,00,000 shares were allotted to shareholders of M/s. Pushpam Infotech Ltd (hereinafter referred to as ‘Pushpam’) on February 14, 2002.
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Source: SecMarx — sebi:WTM/PS/30/IVD/ID-06/JULY/2010. 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.