sebi:WTM/TCN/ID-3/141/Jan/2009
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Facts / Headnote
Eupharma Laboratories Ltd. and four of its directors restrained from accessing the securities market for one year; Mahavir Capital Services Pvt. Ltd, Mahavir Securities Pvt. Ltd and Shri Rajesh Shah restrained for one year; proceeding against Shri Jayantilal M. Patel disposed of without directions.
Provisions invoked
- s. 19
Regulations
- Reg. 3
- Reg. 11
Parties
- M/s. Eupharma Laboratories Ltd.
- Shri Ramanlal V Shah
- Shri Shrenik Shah
- Shri Sudhir K. Agarwal
- Shri Ashok Saxena
- Shri Jayantilal M Patel
- M/s Mahavir Capital Services Pvt. Ltd
- M/s Mahavir Securities Pvt. Ltd
- Shri Rajesh Shah
Holding
Eupharma Laboratories Ltd. and its directors, along with Mahavir Capital Services Pvt. Ltd, Mahavir Securities Pvt. Ltd and Shri Rajesh Shah, were found to have contravened the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 and the preferential issue lock-in guidelines, and were restrained from accessing the securities market for one year.
Full text
Page 2 of 18 1977. The partnership concern was subsequently converted into a public Ltd. company during October 1994 known as Eupharma Laboratories Ltd.
Page 3 of 18 regard to the alleged sale of forfeited shares and other share transfer related issues pointed out by the complainant.
Page 4 of 18 and Mahavir Securities share common address which was the address of a branch office of the company. Thus, the company’s branch, Mahavir Capital and Mahavir Securities were found to be located at the same address. It was also found that Rajesh Shah, authorized representative of Mahavir Capital and a director in Mahavir Securities was the Auditor of the company. In view of the above facts, the investigations had observed that Mahavir Capital and Mahavir Securities were related to the company. It appeared that the company which claimed to have allotted shares to the persons other than promoters on preferential basis had in fact allotted shares of entities forming part of the promoter group in order to avoid the lock-in period on the preferential shares as per the SEBI Preferential Issue guidelines issued on August 04,
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Source: SecMarx — sebi:WTM/TCN/ID-3/141/Jan/2009. 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.