sebi:WTM/PS/34/IVD/ID-4/JAN/10
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Facts / Headnote
Restrained Nova Petrochemicals Ltd. (PAN: AAACN 5419K) from buying, selling and dealing or accessing the securities market directly or indirectly in any manner whatsoever for a period of two years from the date of the order.
Provisions invoked
- s. 11
- s. 12A
Regulations
- Reg. 11
- Reg. 3
Parties
- Nova Petrochemicals Ltd.
Holding
Nova Petrochemicals Ltd. was found to have made misleading corporate announcements regarding an expansion plan and declared non-genuine financial results, thereby aiding and abetting related entities to defraud investors, in violation of Regulations 3(c), 3(d), 4(1), 4(2)(k) and (r) of the PFUTP Regulations. The company was restrained from accessing the securities market for two years.
Full text
Page 2 of 7 Mr. Shyam Gupta (Managing Director), Mr. Jyotiprasad Chiripal, Mr. Mohan Gupta, Mr. R.S. Rathore, Mr. Sunil Kumar Gupta, Mr. Brijmohan Chiripal, Mr. R.C. Jain, Mr. B.C. Rastogi, Mr. V.D. Gupta and Mr. S.N.L. Agarwal (all Directors).
Page 3 of 7 5. I have carefully considered the SCN and material available on record. The issues arises for my consideration are:
Page 4 of 7 by persons acting in concert (hereinafter referred to as ‘PAC’), during the period of January, 2005 to March, 2006 from Nova. Nova replied to this, vide its letter dated March 23, 2008, and provided a list of 21 PAC’s. I observe that all these 21 persons had sold the shares of Nova between February 27, 2006 to March 16, 2006. I note that this exactly falls after the making of corporate announcement of expansion plan and intimation thereof to the stock exchange.
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Source: SecMarx — sebi:WTM/PS/34/IVD/ID-4/JAN/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.