sebi:WTM/RKA/IVD/ID-08/31/2012
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Facts / Headnote
Directs that the preferentially allotted shares of Aastha Broadcasting Network Limited lying in the demat accounts of the five noticees shall remain frozen permanently with immediate effect.
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 5(1)
Parties
- Chneena Impex Pvt. Ltd.
- CEEAN Impex Pvt. Ltd.
- Smitasha Impex Pvt. Ltd.
- Prarekha Exim Pvt. Ltd.
- Bicharshil Traders Ltd.
Holding
The 93,00,000 shares preferentially allotted by Aastha on August 14, 2000 were illegal and fraudulent for want of full consideration, and the preferentially allotted shares lying in the demat accounts of the five noticees shall remain frozen permanently.
Full text
Page 2 of 9 2. The 7,00,000 shares that were issued and allotted on March 31,2000 were already listed on BSE before the allotment of remaining 93,00,000 shares. On August 16, 2000 Aastha applied to BSE for listing of the said 93,00,000 shares and also gave intimation of the preferential allotment. BSE was, however, not satisfied with the replies of Aastha to its queries regarding receipt of full consideration from the allottees in respect of preferential allotment. BSE also examined the trading pattern in the shares of Aastha for the period November 20, 2000 to February 16, 2001 and forwarded its report to SEBI. The BSE report brought out that Aastha had issued 93,00,000 shares on preferential allotment basis in August 2000 to several entities and some of these entities appeared to be related to each other and also with Aastha. Further, these entities had traded in the shares of Aastha in significant quantities during this period.
Page 3 of 9 violation of various clauses of the DIP Guidelines, 2000 and Regulations 5(1) and 6(a) of the PFUTP Regulations, 1995.
Page 4 of 9 Bench of the High Court of Bombay. Vide order dated March 07, 2007 the Hon’ble Division Bench dismissed the appeal of SEBI.
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Source: SecMarx — sebi:WTM/RKA/IVD/ID-08/31/2012. 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.