sebi:WTM/RKA/ISD/132/2016
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Facts / Headnote
Confirmed interim directions against 20 noticees
Provisions invoked
- s. 19
Holding
The Whole Time Member confirmed the ad interim ex-parte order dated March 29, 2016 against the 20 listed Noticees. The directions in paragraph 31 of that order shall remain in force qua those Noticees till further directions.
Full text
Order in the matter of Kailash Auto finance Limited. Page 2 of 4 opportunity of personal hearing before SEBI. 2. The facts and circumstances leading to the passing of the interim order have been discussed therein and I do not deem it necessary to repeat the same and burden this order with repetition. The modus operandi as described in the interim order was that the market platform was grossly misutilized and scheme of reduction of share capital and amalgamation were the mechanisms adopted by Kailash Auto Finance Limited (Kailash Auto) to dubiously increase its value of market capital significantly. Careful Projects Advisory Limited (CPAL) and Panchshul Marketing Limited (PML), the promoters of Kailash Auto prior to their amalgamation, were incorporated with a dubious plan and premeditated arrangement and artifice to increase number of equity shares therein through sham and non-genuine transactions with regard to issuance of their shares which resulted in fetching exorbitant and unrealistic consideration in the said scheme of amalgamation. Pursuant to amalgamation 2058 shareholders of PML and 1,972 shareholders of CPAL (listed as “beneficiaries” in the interim order) received 58,59,10,800 shares of Kailash Auto in the form of consideration.
Order in the matter of Kailash Auto finance Limited. Page 3 of 4 6. I note that copies of the interim order were sent to these 20 Noticees through “Speed Post Acknowledgement Due” at their respective last known addresses. However, the copies of the interim orders returned undelivered with remarks, such as “addressee unavailable”, “addresses could not be located” or “letters unclaimed". As per practice, copy of the interim order was also published on the SEBI website in the portable document format (pdf format) on the date of the interim order so that the concerned entities have easy access to it. In addition to the above, the service of the interim
Order in the matter of Kailash Auto finance Limited. Page 4 of 4 9 Goldensight Management Pvt. Ltd. AAFCG0066N 10 Gainsay Property Pvt. Ltd. AAFCG2185A 11 Goldensight Traders Pvt. Ltd. AAFCG4773J 12 Rochak Vinimay Pvt. Ltd. AAGCR8142P 13 Albino Overseas Pvt. Ltd. AAHCA6112B 14 Sanmati Goods Pvt. Ltd. AAICS9154Q 15 Sinjan Overseas Pvt. Ltd. AAMCS8721P 16 Shallot Dealtrade Pvt. Ltd. AARCS4827R 17 Shallot Tie-Up Pvt. Ltd. AARCS5133J 18 Shivsathi Mercantile Pvt. Ltd. AASCS6284R 19 Jolly Pathak AHGPP6057P 20 Vinod Sukhani AYUPS6072L
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Source: SecMarx — sebi:WTM/RKA/ISD/132/2016. 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.