sebi:WTM/TCN/ID6/148/Jan/2009
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Direction: Shri Suresh Bafna barred from accessing the securities market for two years
Provisions invoked
- s. 19
- s. 69
Regulations
- Reg. 2
Parties
- Shri Suresh Bafna
Holding
The noticee, a Director of Clio Finance Ltd. (co-lead manager), was found to have aided and abetted the promoters in bailing out the public issue of Mazda Fabrics by arranging applications from financiers, thereby contravening the SEBI (PFUTP) Regulations, 1995, and was directed not to access the securities market for a period of two years.
Full text
Page 2 of 14 matter was taken up for further investigations by the Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) to investigate into the possible violations of the provisions of the SEBI Act, 1992, the Rules and Regulations made there under.
Page 3 of 14 5. I have perused the show cause notice issued to the noticee, reply thereto by the noticee and other material on record. The issues that arise for consideration in the instant case are as under:
Page 4 of 14 result in refunding of application money to the public, the promoters of the company and the noticee who is a Director of Clio Finance Ltd., co-lead manager to the public issue had arranged for application to the public issue to make it a success and to buy back the shares after the issue is over from the financiers together with interest. The noticee in his statement dated June 04, 2002 has admitted receipt of Rs.50.8 lakhs by Clio Finance Ltd., from Sneha Investments Ltd., as detailed in subsequent paragraph and that these payments were received as part of buy back of shares from applicants of the IPO.
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Source: SecMarx — sebi:WTM/TCN/ID6/148/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.