sebi:WTM/PS/IVD/ID-6/51/JAN/2012
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Restrained Empower Industries India Ltd from accessing the securities market and prohibited it from buying, selling or otherwise dealing in securities, directly or indirectly, for a period of 6 months.
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 7(3)
- Reg. 13(6)
- Reg. 3(b)
Parties
- Empower Industries India Ltd
Holding
Empower Industries India Ltd was found to have violated Section 12A of the SEBI Act, 1992 and Regulations 3(b), 3(c), 3(d), 4(1), 4(2)(e), 4(2)(k) and 4(2)(r) of the PFUTP Regulations, 2003 by making false corporate announcements and misleading unaudited results that facilitated its promoter-director's fraudulent trading. The company was restrained from accessing the securities market for 6 months, though violations of Regulation 13(6) of the PIT Regulations and Regulation 7(3) of the SAST Regulations were not established.
Full text
Page 2 of 10 that the company projected a false picture to the investors about the performance of the company. By making the said announcements, the company was also alleged to have assisted its promoter-director to trade in the scrip in a fraudulent manner.
Page 3 of 10 i) When the scheduled board meeting was cancelled, due intimation was given to the BSE regarding the same. The company was under the impression that the cancellation of a board meeting on a particular date leads to the cancellation of the proposed agenda.
Page 4 of 10 iii) Whether the company, by making the said announcements facilitated its promoter- director and his related entities in carrying out transactions that led to a rise in the price and volume of the scrip and thereby acted as a fraud on the gullible investors? iv) Whether the company failed to make relevant disclosures under Regulation 13(6) of SEBI (PIT) Regulations and Regulation 7(3) of SEBI (SAST) Regulations to BSE.
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Source: SecMarx — sebi:WTM/PS/IVD/ID-6/51/JAN/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.