sebi:WTM/PS/35/IVD/ID-1/AUG/2010
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Facts / Headnote
Noticees GBL and S.K. Gupta found guilty of violating Regulation 5(a),(b) and 6(a) of PFUTP Regulations and Guideline 13.1A (v) of SEBI (DIP) Guidelines, 2000; restrained from buying, selling or dealing in securities market for two years. Proceedings against Late Vivek Gupta abated.
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 11
- Reg. 3
- Reg. 200
- Reg. 6(a)
- Reg. 3(a)
- Reg. 5(a)
Parties
- Genomics Biotech Ltd.
- S.K. Gupta
- Vivek Gupta
Holding
GBL and S.K. Gupta were found guilty of defrauding shareholders by allotting shares to LKIL without disclosing S.K. Gupta's interest in LKIL, and of issuing misleading newspaper reports to generate interest in the scrip, in violation of Regulation 5(a),(b) and 6(a) of PFUTP Regulations and Guideline 13.1A (v) of SEBI (DIP) Guidelines, 2000. They were restrained from dealing in the securities market for two years.
Full text
Page 2 of 9 slips of 20 lakh shares of GBL to Madan on July 04, 2001 and Vijay Jhindal handed him a cheque dated July 05, 2001 for Rs.5 lakh. Further, as per the assurance, Vijay Jhindal was supposed to give Rs.20 lakh within 10 days of the transfer of the aforesaid shares i.e. on July 14, 2001. When Vivek Gupta approached Vijay Jhindal for the aforesaid payment after a lapse of 10 days of the transfer of shares, he refused to pay him. Vivek Gupta stated in his complaint that the shares were worth Rs.1 crore and Vijay Jhindal was supposed to sell them at Rs.7.15 per share. As per the terms of MoU, the sale proceeds of the said shares were to be shared by Madan and Vivek Gupta in the ratio of 50:50.
Page 3 of 9 into the affairs of GBL and proceed against it in accordance with law. Upon this reference and specific observation of Hon’ble SAT, the matter pertaining to allotment of shares to LKIL by GBL on swap basis was also brought under the purview of investigation.
Page 4 of 9 Taking note of this, I am compelled to proceed with the matter ex-parte, on the basis of material available on record, having complied with the principles of natural justice as against the noticees.
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Source: SecMarx — sebi:WTM/PS/35/IVD/ID-1/AUG/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.