sebi:WTMN/73/CFD/8/04
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Directions issued restraining HTFL and 8 directors from capital market for 5 years; no action against Shri Vijay Gupta
Provisions invoked
- s. 11B
- s. 11
- s. 19
- s. 11(1)
- s. 21
Parties
- M/s Hindustan Tools and Forgings Ltd.
- Shri Resh Goyal
- Smt Abha Goyal
- Shri S R Sodhani
- Shri Arvind Jain
- Shri Manpreet Singh
- Shri Pawan Kumar Sharma
- Shri Avtar Singh
- Dr Mehar Singh Ahluwalia
- Shri Vijay Gupta
Holding
M/s Hindustan Tools and Forgings Ltd. and its 8 directors were directed to disassociate from capital market related activities and not access the capital market for five years, with public companies in which they hold controlling or substantial interest also barred from raising funds for five years; no action was taken against Shri Vijay Gupta.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER DIRECTIONS UNDER SECTION 11 READ WITH SECTION 11B OF THE SEBI ACT, 1992 - IN THE MATTER OF M/s HINDUSTAN TOOLS AND FORGINGS LTD. AND ITS DIRECTORS 1.0 Background 1.1 In terms of order dated 26.3.99 of the Hon’ble Allahabad High Court, Lucknow Bench, in W.P. No. 659/98, Midas Touch Investors Association vs Union of India & ors., a Co-or and Monitoring Committee (hereinafter referred to as the ‘CMC’) was set up jointly by the Department of Company Affairs (hereinafter referred to as ‘the DCA’) and the S and Exchange Board of India (hereinafter referred to as ‘SEBI’) in 1999 in respect of companies which raised money from the public and subsequently found to be not tra These companies were identified as vanishing companies. A Task Force for each region was also set up consisting of Officers of DCA, SEBI and the concerned Stock Exch assist the CMC in identifying vanishing companies in the region and recommending the action to be taken by DCA and SEBI against such companies. 1.2 In the fifth meeting of the CMC held on 1.7.2000, the criteria for identifying vanishing companies has been laid down and companies that met the following criteria were to be con as vanishing companies: a) Companies which have not complied with listing requirements / filing requirements of Stock Exchange / Registrar of Companies respectively for a period of 2 years. b) Where no correspondence has been
been filed against the company and its directors in the court for non-filing of statutory documents. DCA has further informed that the registered office of the company is at In Area, Rajpura Distt., Patiala (Punjab) and the following are the present directors:
[[I]] [1993] 77 Com Cas 356. [[II]] [2000] 27 SCL 458. Place: MUMBAI SECURITIES AND EXCHANGE BOARD OF INDIA 4. Dr Mehar Singh Ahluwalia, VPO Nadala, Teh. Bholath, Distt. Kapurthala DCA also stated that the company is a vanishing company as per records. 4.0 Show cause notice 4.1 In the meeting of the Co-ordination and Monitoring Committee held on 25.2.2003, M/s Hindustan Tools & Forgings Ltd. (HTFL) was identified as one of the vanishing companies in the Northern Region. 4.2 In view of this and the violations referred to hereinabove, a show cause notice dated 27.5.2003 was issued by SEBI to HTFL calling upon the company and its aforesaid directors to explain why various actions, including specific directions under section 11B of the SEBI Act interalia prohibiting them from associating, dealing, accessing and being associated with any intermediary in the capital market for a period of five years should not be issued against them under the SEBI Act and the Securities Contracts (Regulation) Act, 1956. 4.3 Pursuant to the said show cause notice, reply was received from one of the directors Shri Vijay Gupta stating that he had resigned from HTFL on March 8, 1994. While enclosing a copy of Form 32 filed with the Registrar of Companies at Jalandhar in support of his claim, Shri Gupta requested for dropping the proposed action against him.
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:WTMN/73/CFD/8/04. 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.