sebi:WTM/SEBI/ISD/403/2011
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Facts / Headnote
Order dated October 25, 2010 amended to the limited extent of permitting the sale of delisted shares to the acquirer till July 15, 2011, with all other directions remaining the same.
Parties
- Ms. Bela K. Jhaveri
- Ms. Sumangala P. Jhaveri
- Shri Kamal P. Jhaveri
Holding
SEBI amended its earlier Order dated October 25, 2010 to permit the sale of delisted shares to the acquirer until July 15, 2011, while keeping all other directions in force. Escrow amounts held by Karvy are to be released only after confirming from NSDL that no attachment order by law enforcement agencies exists over deposits classified as proceeds of crime.
Full text
Page 2 of 2 amend the directions issued at para 4(e) of captioned Order and to keep the proceeds in a fixed deposit with Nationalized PSU Bank.
3. Directorate of Enforcement, Ahmedabad, vide its letters dated July 5, 2011 informed SEBI that investigation against Jhaveri family are in progress and clarified that in case the shares of HSBC InvestDirect India Ltd.are found to be having a nexus with proceeds of crime, the said shares or its value shall be liable to be attached and confiscated under the prevention of Money Laundering Act, 2002. Further, vide its letter dated July 8, 2011, it stated that it has no objection so far as participation in the buy back offer and clarified that proceeds shall not be parted till further advice from it.
4. In view of above, it has been decided to amend the Order dated October 25, 2010 to the limited extent of permitting the sale of delisted shares to the acquirer till July 15, 2011 with all other directions remaining the same. Further, Karvy is directed that upon completion of the debarment period on February 28, 2012, the amount held with them in escrow account shall be released to the entities only after confirming from NSDL that there is no Order of attachment issued by any law enforcement agencies on deposits in such escrow account classified as proceeds of crime, lying to the credit of Bela K. Jhaveri or Sumangala P. Jhaveri.
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Source: SecMarx — sebi:WTM/SEBI/ISD/403/2011. 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.