sebi:WTM/PS/IVD/ID8/43/Dec/2011
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Facts / Headnote
Interim prohibitory directions: TSL prohibited from raising further capital; TSL and its directors prohibited from buying, selling or dealing in securities; PNB Investment Services Ltd and its MD & CEO Shri L.P. Agarwal prohibited from taking up fresh assignments or involvement in any new issue of capital; stock exchanges and depositories directed to enforce the directions; order without prejudice to further action; noticees given 21 days to file objections and seek personal hearing.
Provisions invoked
- s. 19
Regulations
- Reg. 3
- Reg. 200
- Reg. 3(a)
- Reg. 57
- Reg. 60
- Reg. 57(1)
- Reg. 60(4)
- Reg. 2
- Reg. 4(2)(k)
- Reg. 64
- Reg. 8(1)(c)
Holding
SEBI held that Taksheel Solutions Limited and its merchant banker PNB Investment Services Ltd made material misstatements and omissions in the IPO offer documents and diverted IPO proceeds through circuitous routes to entities connected to promoters and to entities that traded in the scrip on listing day, warranting immediate interim prohibitory directions against TSL, its directors, the merchant banker and connected entities.
Full text
Page 2 of 43 2. It is observed that the Company was incorporated on September 23, 1999 as IBSS Techno-Park Pvt. Ltd at Hyderabad as software solution provider and subsequently changed the name to Taksheel Solutions Pvt. Ltd. on November 29, 2006 and later converted into Taksheel Solutions Ltd on December 28, 2006. Details of promoters and directors of the company are as under:
Page 3 of 43 I. Observations made in the offer document vis a vis factual status II. Trading pattern on and around the day of listing
Page 4 of 43 work, TSL was served various show cause notices by the APIICL during 2006 and 2007 and subsequently the said allotment was cancelled vide APIICL Order dated 08.10.2008. While cancelling the said allotment, APIICL in its Order observed that “it was found that you have failed to establish the proposed industry as per your commitment and failed to utilize the land for the said purpose even after lapse of two and half years since the date of handing over the possession of the land to you. Thus you have committed breach of conditions of the allotment order, agreement and you have failed to utilize the land for industrial use i.e. the purpose for which it was allotted in your favour. Subsequently, the allotment of land is liable to be cancelled by the corporation.” The order further states that land is kept vacant and there is a failure on the part of TSL to utilize the land for setting up of the proposed industry, to obtain necessary permission from various departments and to construct and complete factory built-ins, erect machinery for setting up of the proposed industry….. The Cancellation Order clearly states that in the facts and circumstances, APIICL is compelled to cancel the allotment of land made in favor of TSL.
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Source: SecMarx — sebi:WTM/PS/IVD/ID8/43/Dec/2011. 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.