sebi:WTM/TCN/ID-3/14/JUNE/2008
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Shree Rama Multi-Tech Limited restrained from accessing the securities market and prohibited from buying, selling or dealing in securities, directly or indirectly, for a period of 5 years; show cause notice against Shri Rambhai Patel, Dr. Prakash Trivedi and Shri Hansraj Kanji disposed of without any directions; proceedings against Shri Vikram Patel, Shri Sharad Patel and Shri Prakash Patel kept in abeyance pending consent proceedings.
Provisions invoked
- s. 11B
- s. 19
Regulations
- Reg. 11
- Reg. 4
- Reg. 13
- Reg. 18
Parties
- Shree Rama Multi-Tech Limited
- Shri Vikram Patel
- Shri Sharad Patel
- Shri Prakash Patel
- Shri Rambhai Patel
- Shri Hansraj Kanji
- Dr. Prakash Trivedi
Holding
Shree Rama Multi-Tech Limited was found to have contravened Regulation 4(a) and (e) of the PFUTP Regulations, 1995 by aiding and abetting associate entities in price manipulation of its scrip, and was restrained from accessing the securities market for 5 years. The show cause notices against non-executive directors Shri Rambhai Patel, Dr. Prakash Trivedi and Shri Hansraj Kanji were disposed of without directions.
Full text
Page 2 of 18 I note that the Whole Time Member, Securities and Exchange Board of India (‘SEBI’) had passed an order dated 06-09-2004 under Sections 11 and 11B of the SEBI Act, 1992 read with Regulations 11 and 13 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating To Securities Market) Regulations, 2003 against M/s. Shree Rama Multi-Tech Limited (hereinafter referred to as ‘SRMTL’) and its directors, Shri Vikram Patel, Shri Sharad Patel, Shri Prakash Patel, Shri Rambhai Patel, Shri Hansraj Kanji and Dr. Prakash Trivedi, restraining them from accessing the securities market and further prohibited them from buying, selling or dealing in securities, directly or indirectly, for a period of five years. The above said SEBI order was impugned before the Hon’ble SAT in Appeals Nos. 377 of 2004 (filed by SRMTL), 378 of 2004 (filed by S/Shri Vikram Patel, Sharad Patel and Prakash Patel) and 380 of 2004 (filed by S/Shri Rambhai Patel, Hansraj Kanji and Dr. Prakash Trivedi).
Page 3 of 18 before me through their authorized representatives and made their oral submissions. There were no representations for Shri Vikram Patel, Shri Sharad Patel, Shri Prakash Patel and Shri Hansraj Kanji. Subsequently, Shri Vikram Patel, Shri Sharad Patel, Shri Prakash Patel had filed their applications for ‘consent order’ in accordance with the scheme for ‘consent orders’. As Shri Hansraj Kanji had not appeared for hearing on 03-09-2007, another opportunity of hearing was afforded to him on 26-03- 2008, which was also not availed by him. I note that Shri Hansraj Kanji is presently residing in Japan. As no response was received from him, the hearing notice issued to him was uploaded in the SEBI website. In view of the above reasons, the orders could not be passed within the stipulated period. Further, three directors viz., Shri Vikram Patel, Shri Sharad Patel and Shri Prakash Patel have filed their consent applications during the month of August, 2007. In view of their filing applications for ‘consent
Page 4 of 18 that Vimpsan Investments Pvt. Ltd. and Sanket Estates and Finance Pvt. Ltd. were the investment arms of Shri Vikram Patel and Shri Sharad Patel, promoters of SRMTL. From 1994 onwards SRMTL raised its capital from time to time and allotted shares to Foreign Institutional Investors like HSBC Pvt. Equity India Fund Ltd. (HPEIF), CDC Financial Services (Mauritius) Ltd. (CDCFSL), Nippon Investment and Finance Co. Ltd. (NIFCL) and South Asia Regional Fund, etc.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/TCN/ID-3/14/JUNE/2008. 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.