sebi:WTM/TCN/67/11/DIL/2007
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Facts / Headnote
SHL and its directors Shri P. Dinakaran, Shri Amulya Mandal and Captain Mahindran restrained from accessing the securities market and from buying, selling or otherwise dealing in securities for a period of five years with immediate effect; no action against Shri Sharad Pathak and Shri Sandeep Anand.
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 21
Parties
- M/s Simplex Holdings Ltd
- Shri P Dinakaran
- Shri Amulya Mandal
- Captain Mahindran
Holding
SEBI restrained Simplex Holdings Ltd and its directors Shri P. Dinakaran, Shri Amulya Mandal and Captain Mahindran from accessing the securities market, directly or indirectly, and from buying, selling or otherwise dealing in securities for a period of five years with immediate effect. No action was taken against Shri Sharad Pathak and Shri Sandeep Anand as they had resigned from the company.
Full text
Page 2 of 11 b. Where no correspondence has been received by the Exchange from the company for a long time. c. Where no office of the company is located at the mentioned registered office address at the time of Stock Exchange inspection. 1.3 In the meeting of the co-ordination and Monitoring Committee held on 25.02.2003, the list of Vanishing Companies was reviewed and M/s Simplex Holdings Ltd (hereinafter referred to as SHL) was identified as one of the companies falling in the aforesaid criteria and was therefore categorized as “vanishing company”. 2.1 SHL came out with a public issue of 7,50,000 equity shares of Rs 10/- each for cash at par through its prospectus dated 18.04.1995. The issue opened on 12.06.1995 and closed on 22.06.1995. It was stated in the prospectus that initial listing applications were made to the Stock Exchanges at Delhi and Ludhiana for permission to deal in shares. At page 7 of the prospectus, the objects of the issue were given as: i) To consolidate its capital base and to augment its long term resources to meet the needs of its business of investment in securities, leasing, inter corporate deposits, bill discounting by infusion of long term funds in the form of equity capital.
Page 3 of 11 2.3 It was informed to SEBI by the Delhi Stock Exchange that the company had not been complying with the post – issue listing requirements like submission of report and annual accounts etc. The exchange had also reported that their officers visited the office premises of the company at the last known address, i.e. 219, Park View Plaza, Azmal Khan Road, New Delhi – 110005 but found that the company does not exist there. 2.4 To ascertain the whereabouts of the company and its promoters / directors, letters dated 13.04.1999 were written by SEBI to the Lead Managers to the Issue i.e. Master Trust Limited (MTL), Registrar to the Issue i.e. Inhouse Share Registry, Bankers to an Issue i.e Punjab National Bank and Advisors to the Issue i.e. Kumra Bhatia & Co. (Chartered Accountants) as mentioned in the prospectus. MTL vide letter dated 26.04.1999 informed SEBI that after the receipt of SEBI letter dated 13.04.1999, they had interacted with one of the person who was the promoter - director of the company at the time of the Public Issue. He was contacted at his office 219, Park View Plaza, Azmal Khan Road, New Delhi 110005. They also mentioned in their letter that at that point of time registered office of the Company was B-23, Ansal Tower, 38, Nehru Place, New Delhi. 2.5 Inhouse Share Registry vide letter dated 21.04.1999 informed SEBI that they were no longer acting as Share Transfer Agent of the company and as per records available with them, the registered office of th
Page 4 of 11 company was located at 219, Park View Plaza, 32 East Park Area, Azmal Khan Road, New Delhi – 5. 2.7 DSE vide its letter dated 21.05.1999 informed that the company had its registered office at Ajmal Khan Road which was subsequently moved to Nehru Place. It was further informed by DSE that the management of the company had been handed over to a group of Directors namely, Shri P Dinakaran and Capt. Mahindran by virtue of an agreement. Subsequently, Shri Amulya Mandal was co-opted on the Board of Directors of the company.
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Source: SecMarx — sebi:WTM/TCN/67/11/DIL/2007. 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.