Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. The appellant company is aggrieved by the respondent's order dated 16-2-2000, debarring it from accessing capital market for a period of 5 years. The order is issued under regulation 11 of the Securities & Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 1995.2. The appellant company was originally incorporated as a private limited company on 2-11-1993, and subsequently converted into a public limited company on 31-3-1995. In January, 1996 the appellant-company issued 23 lakhs equity shares of Rs. 10 each. Out of the said 23 lakhs shares 17.80 lakhs were issued to the public. The remaining 5.20 lakhs shares were reserved for allotment to the promoters, directors, their friends, relatives and associates. The public issues opened for subscription on 8-1-1996 was closed on 10-1-1996 as the issue was overwhelmingly over subscribed. Shares were listed on the Ahmedabad Stock Exchange (ASE) on 26-3-1996. It was ...
Tag this Judgment!Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. In the present appeal, the Appellant has challenged a part of the order captioned "Order under Section 11 and 11B of SEBI Act, 1992 in the case of Shirman Assets Management Co. Ltd. in respect to transactions in the shares of Videocon International Ltd.", dated 1-2-200, issued by the Respondent No.2 as Chairman of the Securities & Exchange Board of India, whereby the Appellant has been rendered ineligible 'to hold any public position in any capital market related public institution for a further period of 3 years'. The prayer in the appeal is to quash and set aside the impugned order and or in the alternative to direct the Respondents 1 to 3 to withdraw the order so far as it concerns the Appellant.2. Before adverting to the validity and sustainability of the order under challenged, it is felt necessary to briefly state the background leading to filing of the present appeal.3. The Securities and Exchange Board of India Act, 1992 ('the Act') provides for the establishment of a B...
Tag this Judgment!Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. In the present appeal, the Appellant has challenged a part of the order captioned "Order under section 11 and 11B of SEBI , 1992, in the case of Shriram Assets Management Company Limited in respect to transactions in the shares of Videocon International Limited", dated 1st February, 2000, issued by Respondent No.2 as Chairman of the Securities & Exchange Board of India, whereby the Appellant has been rendered ineligible " to hold any public position in any capital market related public institution for a further period of 3 years". The prayer in the appeal is to quash and set aside the impugned order and or in the alternative to direct the Respondents 1 to 3 to withdraw the order so far as it concerns the Appellant.2. Before adverting to the validity and sustainability of the order under challenge, it is felt necessary to briefly state the back ground leading to filing of the present appeal.3. The Securities and Exchange Board of India, Act, 1992 (the Act) provides for the estab...
Tag this Judgment!Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. This appeal, by M/s. Status Management Services Limited, the appellant herein, is directed against the order dated 17th December, 1999 made by the Securities & Exchange Board of India, the Respondent herein. The impugned order captioned "Directions under section 11(1) and 11B of the SEBI At, 1992 - Vanishing companies" is a common order addressed to 49 companies and 84 company directors, debarring them from carrying on any capital market related activities, raising funds from the capital market, dealing in securities etc. The Appellant Company is aggrieved as having considered it as one of the "vanishing companies" and subjected to the impugned direction.2. The Appellant Company was incorporated as a private limited company on 8th April 1993. According to the company's Memorandum of Association, the main objects to be pursued by the company on its incorporation are: "1. Subject to the approval of SEBI and other authorities where required to carry on all or any of the business i...
Tag this Judgment!Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. These two appeals by the Appellants viz. Bank of Baroda and Union Bank of India, are directed against the two separate orders, both dated January 19, 2000 made the Respondent, directing the Appellants to refund the application money collected by them from the subscribers, in their capacity as the Bankers to the Issue in the public issue of shares made by one Jaltarang Motels Ltd., in December 1995.2. Material facts giving rise to these two appeals relate to matters arising out of the public issue of 36 lakhs equity shares of Rs. 1 01- each, made by Jaltarang Motels Ltd (herein after referred to as the Company) by issuing a prospectus. Both the Appellants are public sector banks holding certificate of registration from the Respondent, to act as "Bankers to an Issue". The Appellants along with Punjab National Bank were the Bankers to an Issue to the company's public issue of shares. The issue was opened for public subscription on December 21, 1995 and closed on December 26, 1995 with...
Tag this Judgment!Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. This appeal is directed against the order dated December 15,1999 made by the Adjudicating Officer, imposing a sum of Rs. 15, 000/- as penalty against the appellant.2. The appellant is private limited company, holding a certificate of registration for carrying on the business of stockbrokers. Securities and Exchange Board of India (SEBI), which is empowered to regulate the activities of stock exchanges, market intermediaries, etc had decided to inspect the records of the appellant to verify as to whether the appellant was maintaining statutory records, complying the requirements of the SEBI Act, etc. and the following conditions of registration of the appellant as stock broker and communication to this effect was issued to the appellant.3. It has been stated that the appellant failed to furnish certain information called for by SEBI in the specific format within the stipulated time and further that the books and records called for were not produced before the inspectors. In the ligh...
Tag this Judgment!Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. SRG Infotec Limited, the appellants herein, are aggrieved by the order dated 1-4-1999 made by the Adjudicating Officer, holding them guilty of non-compliance of the requirements of Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Rules, 1993 ('the Rules'), read with Section 15B of the Securities and Exchange Board of India Act, 1992 ('the Act') and imposing penalty of Rs. 3 lakhs.2. The appellants, registered as a public limited company under the Companies Act, 1956, are engaged in providing services of Registrars to an Issue (Registrars) and Share Transfer Agents (Transfer Agents) to corpo- rate entities. They are holding Category I registration certificate granted by the Securities and Exchange Board of India (SEBI). On the basis of information in the quarterly reports submitted by the appellants, the SEBI prima facie felt that the appellants were not complying with the requirements of the Rules and appointed an Adjudicating Officer on 28-...
Tag this Judgment!Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. This appeal is directed against the order dated November 16, 1998 made by the Adjudicating officer, imposing Rs. 25, 000/- as penalty against Punjab & Sind Bank, the appellant herein.2. The Appellant, a public sector bank is holding a certificate of registration granted by the Securities and Exchange Board of India, to act as Banker to an Issue. Since the registration was valid for three years, on its expiry in 1998 the Appellant sought renewal of the same by submitting requisite application with details. However, from the particulars furnished, the Respondent felt that the Appellant had not fulfilled the requirements of the condition attached to the certificate mandating compliance of the statutory requirement of entering into an agreement with the issuer companies detailing specific particulars as provided for in the regulations. The matter was therefore referred for enquiry and adjudication . The Adjudicating officer after enquiry, adjudged the Appellant guilty of the charge...
Tag this Judgment!Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. State Bank of Indore, the Appellant herein is an associate bank of State Bank of India. It has been granted registration under the Securities and Exchange Board of India Act, 1992 ('the Act') to act as Banker to an Issue. Since the registration was granted on 12.12.1994 and the currency of registration being 3 years, on expiry of the same in December, 1997 the Appellant sought renewal by submitting the requisite particulars in the prescribed manner with the respondent.However, the respondent on examination of the particulars so furnished, prima facie felt that he Appellant had not complied with the condition subject to which the registration was granted inasmuch as no agreement in the prescribed manner was found entered into by the appellant with the bodies corporate issuing securities for whose behalf it had acted as Banker to Issue. The matter was referred to the Adjudicating Officer for enquiry and adjudication vide respondent's order dated 31-3-1998.The Adjudicating officer iss...
Tag this Judgment!Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
1. Karnataka Bank Ltd., the Appellant herein is aggrieved by the order dated 9-11-1998 made by the Adjudicating Officer, imposing a penalty of Rs. 25,000 under Section 15B of the Securities and Exchange Board of India Act, 1992 ('the Act').2. The Appellant, a Scheduled Bank engaged in banking business, is registered with the Securities and Exchange Board of India as Banker to an Issue. Banker to an Issue has an important role to play in public issue of securities, as it is entrusted with the task of receiving applications alongwith application money from the applicants, through its designated branches on behalf of the issuer company and in view of this the Banker is fastened with certain obligations to ensure accountability and thereby an element of safety to the investing public. Securities and Exchange Board of India, for the purpose had notified Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994. These regulations are binding on the Bankers to Issues and...
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