sebi:WTM/RKA/ISD/106/2016
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Facts / Headnote
Interim directions issued vide ad interim ex-parte order dated June 01, 2016 confirmed and continued in force till further directions.
Provisions invoked
- s. 19
Parties
- Dhyana Finstock Limited
- Pinakin Dahyabhai Makwana
- Sanjay Nandlalbhai Parelia HUF
- Suresh Chinde Gowda
- Baldevbhai Shankerlal Patel
- Naranbhai Panchal
- Ramilaben Baladevbhai Patel
- Kiritbhai Shah
- Jayshreeben Shah
- Chandrikaben Panchal
- Rinkeshkumar Panchal
- Parin Infrastructure Pvt Ltd
Holding
The directions issued against the Noticees vide the ad interim ex-parte order dated June 01, 2016 in the matter of Dhyana Finstock Limited are confirmed and shall remain in force till further directions, pending completion of investigation.
Full text
Order in the matter of Dhyana Finstock Limited Page 2 of 4 investors in the securities market. I note that investigation in the matter is in progress and appropriate decision, in accordance with law, would be taken after completion thereof. Thus, the issue for consideration at this stage is whether the interim directions, issued against the Noticees vide the interim order, need to be confirmed, vacated or modified in any manner, during pendency of investigation in the matter.
Order in the matter of Dhyana Finstock Limited Page 3 of 4 7. The interim order has also brought out the connection / relationship of the exit providers with the company and other entities involved in the entire scheme illustrated therein. As regards the preferential allottees, it is noted that it is a settled position of law that preferential allotment of shares is an issue of shares by an issuer to select person or group of persons on a private placement basis unlike a public issue where funds are raised by inviting subscriptions from public in general. It is also a matter of common knowledge that a preferential allotment is made to the persons/entities on a one-to-one basis who are acquainted/familiar with the company and/or its promoters/directors. A company will, in no case, make a preferential allotment to a stranger who just approaches it for allotment of its shares. A preferential allotment is always for the purposes of meeting fund requirements of the concerned company and involves a covert, manifested and planned actions by the concerned parties, i.e.- (a) the company to identify select persons/group of persons who are known to it or its promoters/directors for investing in its share capital, (b) select persons/ group of persons (preferential allottees) exercise due diligence and then finance the fund requirements of the company and subscribe to its shares issued on preferential basis; (c) the company allots shares to the preferential allottees.
Order in the matter of Dhyana Finstock Limited Page 4 of 4 Sl. No. NAME OF THE ENTITY PAN CATEGORY 1 Pinakin Dahyabhai Makwana APJPM5729E Non Executive Director 2 Sanjay Nandlalbhai Parelia HUF AATHS5168J Preferential Allottee 3 Suresh Chinde Gowda AHVPG4424G Preferential Allottee 4 Baldevbhai Shankerlal Patel ACIPP5953F Dhyana Group 5 Naranbhai Panchal AMQPP0054P Dhyana Group 6 Ramilaben Baladevbhai Patel AUHPP8735C Dhyana Group 7 Kiritbhai Shah AWRPS2401E Dhyana Group 8 Jayshreeben Shah BQMPS6009Q Dhyana Group 9 Chandrikaben Panchal BXQPP2080R Dhyana Group 10 Rinkeshkumar Panchal BYCPP1543E Dhyana Group 11 Parin Infrastructure Pvt Ltd AAGCP6796D Dhyana Group
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Source: SecMarx — sebi:WTM/RKA/ISD/106/2016. 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.