sebi:WTM/PS/ID2/42/FEB/10
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Facts / Headnote
Restrained Alka India Limited from buying, selling or dealing in the securities market or accessing the securities market, directly or indirectly, for a period of six months.
Provisions invoked
- s. 11
- s. 17
- s. 209
Regulations
- Reg. 11
- Reg. 3
- Reg. 4
- Reg. 4(2)
Parties
- Alka India Limited (AIL)
Holding
AIL was found to have violated Regulation 3(a),(b),(c)&(d) and 4(1), 4(2)(a),(k) and (r) of the SEBI PFUTP Regulations, 2003 by making misleading announcements (inflated quarterly results, export orders, acquisition of units) to raise the scrip price so promoters and related entities could offload shares, and was restrained from accessing the securities market for six months. The allegation regarding violation of DIP Guidelines clauses 13.3.1(f) and (g) was not sustained as those clauses were inserted after the preferential allotment and had no retrospective effect.
Full text
Page 2 of 13 2. Vide letter dated April 24, 2009 a notice was issued to AIL asking them to show cause as to why action under Section 11, 11B and 11(4) of the SEBI Act, 1992 read with Regulation 11 of PFUTP Regulations including restraining from accessing the capital market and prohibiting from buying, selling or dealing in the securities in any manner or whatsoever for a particular period should not be initiated against them.
Page 3 of 13 c. Board of Directors decided to double the installed capacity with in next two years by internal accrual and term loans.
Page 4 of 13 VIII. Net profit as per unaudited results of the year ended September 30, 2003 was Rs.6.66crores. However, in the audited results for the year ended September 30, 2003, net profit was shown as Rs.4.47crores around 33% less than unaudited figure of Rs.6.66crores.
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Source: SecMarx — sebi:WTM/PS/ID2/42/FEB/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.