sebi:WTMN/3/CFD/6/04
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Facts / Headnote
Order dated 17.12.99 revoked insofar as it relates to Shri J.P. Gupta, with immediate effect
Provisions invoked
- s. 11B
- s. 11
- s. 19
- s. 21
Parties
- M/s Sukhchain Cements Ltd.
- Shri J.P. Gupta
- Shri Parampal Singh Mann
Holding
The SEBI order dated 17.12.99 debarring Shri J.P. Gupta from capital market activities for 5 years was revoked with immediate effect. Shri J.P. Gupta was held not responsible for the violations committed by M/s Sukhchain Cements Ltd.
Full text
11(1) and 11B of the Securities and Exchange Board of India Act, 1992 (SEBI Act) had directed, interalia M/s Sukhchain Cements Ltd. and its two directors namely Shri J.P. Gupta and Shri Parampal Singh Mann to disassociate themselves in every respect from the capital market related activities, not to raise funds from the capital market, not to deal in securities and not to be associated with any of the intermediaries in the capital market for a period of 5 years.
6. Shri Gupta vide his letter dt. 02.05.03 submitted that he did not hold shares of the company either before or after his resignation. He further confirmed that his spouse, family members or associates do not have any post resignation association/ connection with the company. Shri J P Gupta vide his letter dated 05.08.03 submitted a letter of company dated 01.08.03 confirming that Shri J P Gupta or any of his family members never held any equity of the company. 7.1 Pursuant to the letter dated 05.08.03 it was decided to grant Shri Gupta personal hearing in order to take a view in the matter. Accordingly, SEBI vide its letter dated 03.09.03 advised him to appear for personal hearing before me on 26.09.03 at Mumbai. Shri Gupta, however, vide his letter dated 06.09.03 while expressing his inability to appear for personal hearing at Mumbai due to his old age and financial constraint, proposed to appear for personal hearing at Delhi. Further, he vide same letter made following additional submissions: 7.2 From the date of his appointment as Director till the date of resignation he did not receive any notice for attending the meetings of Board of Directors, Agenda Notes and copies of decisions taken in the meetings of the Board. He was also not invited to attend Annual / Extra Ordinary General Meeting of the company and no notice thereof was sent to him or received by him. In the meetings of Board of Directors, held after his appointment as a director, he was given leave of absence
Gupta during the personal hearing and I note that Shri Gupta, with no shareholding in the company had been inducted as an independent director of the company and was no longer on the Board of the company when it defaulted in the compliance of the listing agreement. This is clear from the undertaking/ submission of Shri Gupta and also from the letter dt. 01.08.03 of M/s Sukhchain Cements Ltd. 9.2 I have also noted that no order was passed against the main promoters and other directors of the company as they had responded to the show cause notices forwarded by SEBI. As it transpires, Shri Gupta could not respond because he did not receive the show cause notice, which is found to have been sent / forwarded to the wrong address. Further, Shri Gupta had resigned even before public issue opened for subscription and the default of the company occurred much after his resignation.
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Source: SecMarx — sebi:WTMN/3/CFD/6/04. 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.