sebi:WTM/PS/IVD-ID5/42/2011/DEC

SEBI · SEBI · 2011-09-08 · Prashant Saran, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Ad interim ex-parte order prohibiting PG Electroplast Ltd. from raising further capital and prohibiting the company and its directors from buying, selling or dealing in securities market pending investigation; directions to stock exchanges and depositories; order effective immediately; objections invited within 21 days.

Provisions invoked

• s. 19
• s. 12A

Regulations

• Reg. 3
• Reg. 13
• Reg. 64(1)
• Reg. 57(1)
• Reg. 57

Holding

SEBI prima facie found that PG Electroplast Ltd. diverted a predominant portion of its IPO proceeds for equity market operations, questionable land deals and raw material purchases, and issued an ad interim ex-parte order prohibiting the company from raising further capital and prohibiting the company and its directors from dealing in securities pending investigation.

Full text

1.3. C 2. Deta 2.1. Table The scrip w the scrip o and closed 6,92,61,35 listing acro 2011) the and closed of 1,21,44 exchanges closed at ` Dec 19, 20 well as tra under: Chart No. 1 ails of BID The detail subsequen details are e No. 2 was listed a opened at ` d at ` 415 50 shares (a oss both th scrip open d at ` 483.2 4,815 shar s. The price ` 212.3 on 011 was ` 2 aded volum and Major s of bids ntly rejected as under: at NSE and ` 215 at NS .3 i.e. almo approx. 12 e exchang ed at ` 450 2, i.e. appro res were e of the scr Oct 05, 20 207 per sha mes during Allottees: placed in d / withdra 2 of 76  d BSE on S SE, increase ost double times the is es (NSE a 0 at NSE, t ox 16% hig traded on rip decreas

3 of 76 Application Details  Details of Technical Rejection / Withdrawals after close of  bid / Cheque Return/ Amount not blocked in ASBA   Category  Total  no.  of  applications  received at ` 210  No. of shares  applied   No.  of  applications  rejected  No.  of  shares   Reason  QIB  6 2822550 NIL NIL  NIL NII  28 15,72,990 NIL NIL  NIL Retail  4297 3302460 25 13230  Technical Rejection 63 50610  Cheque Return 1 30  Amount not blocked in ASBA NIL NIL  Withdrawals after close of bid

4 of 76 QIBs: 2.5. The details of the QIBs, allotments to them and sale by them during the first 3 days from the date of listing (i.e. Sept 26 till Sept 28, 2011) are as under: Table No. 4 PAN  Name of entity  No. of  Shares  Applied  in the IPO  No. of  Shares  allotted  in the IPO  No. of shares  sold (net  sale) on the  day of listing  No. of shares  sold (net sale)  during the  first 3 days  from the date  of listing  AABCI5500R  INDIA MAX INVESTMENT FUND  LIMITED  738090  738090  0  0  AABCL8363M  AFRASIA BANK LIMITED A/C LEMAN  DIVERSIFIED FUND  629820  629820  0  75193  AANCS3131Q  SPARROW ASIA DIVERSIFIED  OPPORTUNITIES FUND  560670  560670  0  33731  AACCA6818K  THE ROYAL BANK OF SCOTLAND N.V.,  (LONDON) BRANCH  441630  441630  441630  441630  AADCG9900H  SILVERSTREAK ASSET MANAGEMENT  COMPANY LIMITED A/C GROVSNOR  INVESTMENT FUND LTD  238080  238080  0  0  AAECP3528P  PRIME INDIA INVESTMENT FUND LTD  214260  214260  0  0

Source: SecMarx — sebi:WTM/PS/IVD-ID5/42/2011/DEC. 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.