sebi:WTM/PS/72/IVD/ID-06/MARCH/12
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Facts / Headnote
Restrained Rajiv Acharya from buying, selling or dealing in securities and from associating with the securities market for a period of 6 months.
Provisions invoked
- s. 19
- s. 12A
- s. 81
Regulations
- Reg. 3
- Reg. 13
- Reg. 11
- Reg. 3(a)
Parties
- Rajiv Acharya
Holding
Rajiv Acharya, as an allottee of preferential shares of STEL, acted as a willing participant in a scheme of manipulation and thereby violated Section 12A of the SEBI Act, 1992 read with the PFUTP Regulations, 1995 and 2003. He is restrained from buying, selling or dealing in securities and from associating with the securities market for 6 months.
Full text
Page 2 of 7 3. Accordingly, a notice dated January 1, 2009 (hereinafter referred to as ‘SCN’) was issued to Rajiv Acharya amongst others, alleging that the acts of the noticee were in violation of Section 12A of the SEBI Act, 1992 read with Regulations 3, 4(b), 4(c), and 6(a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as ‘PFUTP Regulations, 1995’) and Regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(a) of (Prohibition of Fraudulent and Unfair Trade Practices Relating To Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations, 2003’). The SCN called upon the noticee to show cause as to why suitable directions under Sections 11 and 11B of the SEBI Act, 1992 including restraining him from accessing the capital market and prohibiting him from buying, selling or dealing in securities in any manner should not be issued against him.
Page 3 of 7 equity shares were allotted to certain shareholders of Cybersoft on December 11, 2001. ii. Second preferential issue: 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 certain shareholders of Pushpam on February 14, 2002. However, these shares were not listed on the BSE. The listed capital of the company during the investigation period was just 36,00,000 shares.
Page 4 of 7 10. I note that subsequent to the first preferential allotment, STEL filed an application before BSE and ASE for the listing of 1,00,00,000 equity shares. The ASE gave an in principle approval for the same on December 20, 2001. In order to complete the listing formalities, the BSE sought certain additional information from STEL. In the meantime, NSDL informed BSE that the company had dematerialized its unlisted shares using the in-principle approval from ASE. Again, BSE advised the company to furnish the details of the dematerialized shares. However, the company did not furnish the information requested by the BSE. Following this, the BSE vide its letter dated December 28, 2002 issued a notice to the company to show cause as to why an action of withdrawing permission to the dealings in the company’s securities on BSE, should not be taken. STEL did not reply. Subsequently, BSE suspended trading in the securities of the company with effect from January 29, 2003. The listing of the preferential issue of the company of 1,00,00,000 equity shares of the company was also rejected by the Listing Committee of the BSE.
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Source: SecMarx — sebi:WTM/PS/72/IVD/ID-06/MARCH/12. 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.