sebi:WTM/PS/74/IVD/ID-01/MARCH/2012
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Facts / Headnote
Shalibhadra Securities Limited, Mr. Hemendra Shah, Ms. Sulochana H. Shah, Mr. Rahul H. Shah and Mr. Lalit C. Mehta restrained from buying, selling or dealing in the securities market whatsoever or accessing the securities market, directly or indirectly, for a period of one year from the date of the order
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
Regulations
- Reg. 6(a)
Parties
- Shalibhadra Securities Limited
- Mr. Hemendra Shah
- Ms. Sulochana H. Shah
- Mr. Rahul H. Shah
- Mr. Lalit C. Mehta
Holding
SEBI held that the noticees acted in a fraudulent manner in violation of Regulation 6(a) of the PFUTP Regulations, 1995 by lending their names and accounts to G.S. Sridhar and his group for the preferential issue of Datasoft, and restrained all five noticees from accessing or dealing in the securities market for one year.
Full text
Page 2 of 7 and `15.30 per share towards premium on first and final call before August 31, 2000. Later on, the time for payment of final call was extended by Datasoft till April 27, 2001 to give the allottees adequate time to pay the final call money. A total of 41 entities had applied for the preferential allotment of Datasoft. Out of these, 16 applicants had applied for 1,18,50,000 shares and they paid `3,19,95,000 towards application money. Later on, these 16 applicants had defaulted in making the payment of the call money. The application money of these 16 entities who had not paid the balance amount even after the extended time, was forfeited.
Page 3 of 7 granted to Shalibhadra, Hemendra Shah and Mr. Rahul H. Shah on July 08, 2011. The noticees namely Ms. Sulochana H. Shah and Lalit C. Mehta in their replies had refused the opportunity of personal hearing. On the date fixed for personal hearing, Ms. Rinku Valanju appeared as the authorized representative of Shalibhadra, Mr. Hemendra Shah appeared in-person and Mr. Rahul H. Shah appeared through Mr. J.J. Bhatt, Advocate.
Page 4 of 7 8. Whether the noticees had acted in a fraudulent manner while making an application in the preferential issue of Datasoft? a. I note that out of the total of forty one (41) entities who had applied for the preferential allotment in the scrip of Datasoft, 25 applicants had applied for mere 1,50,000 shares and they paid `4,05,000 as application money and the remaining 16 applicants had applied for as many as 1,18,50,000 shares and paid `3,19,95,000 towards application money. However, these 16 applicants had defaulted in making the payment of the call money and therefore their application money was forfeited. Thus, Datasoft forfeited over 1.18 crore out of 1.20 crore shares allotted under preferential issue through private placement
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Source: SecMarx — sebi:WTM/PS/74/IVD/ID-01/MARCH/2012. 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.