- (1.) THE present appeals are directed against the order dated 19th April, 2001, made by Shri D.R.Mehta, the then Chairman, Securities & Exchange Board of India. By the said order the Appellant in appeal No.23/2001 has been directed "not to raise money from the public in the capital market for a period of three years in the interest of investors". It has been further directed that prosecution proceedings be launched against the Appellant "through" its directors/officers i.e. Shri V.N.Dhoot, Shri Shelgikar and Shri S.M.Hegde, the Appellants in appeals No.24/2001, 25/2001 and 26/2001 respectively, under the provisions of the Securities and Exchange Board of India Act, 1992 ( the Act) for violation of regulation 4(a) and 4(d) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations 1995 ( 1995 the Regulations).
(2.) The Appellant in appeal No.23/2001 (the Appellant company) is a public limited company. It is mainly engaged in the husiness of manufacturing and selling of consumer electronic items and consumer durables, such as colour televisions, audio-video systems, refrigerators, air-conditioners, washing machines, computers, etc. . The share capital of the Appellant as on 31.3. 2000 was Rs.1411.89 millions . Appellant's shares are listed on the Stock Exchange, Mumbai (BSE), traded as permitted securities on the National Stock Exchange (NSE) and also traded on the stock exchanges at Bangalore, Chennai, Delhi, Calcutta, Pune and Jaipur. 65% of the Appellant's share capital is stated to be held by the public and the balance 35% by the promoters. Appellant in appeal No.24/2001 (Shri V.N.Dhoot) is the Chairman and Managing Director of the Appellant company. Appellant in Appeal No.25/2001 (Shri S.M.Hegde) and Appellant in Appeal No. 26/2001 ( Shri S.K.Shelgikar) are stated to be associated with the Appellant company in their professional capacity as consultant/adviser. They are also authorised signatories of "Videocon group of companies"
(3.) RESPONDENT No.1(SEBI) is a statutory body established under section 3 of the Act. It is mandated to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market. RESPONDENT No.2 (the Chairman) is the Chairman, SEBI, who has passed the impugned order. RESPONDENT No.3 is Division Chief, SEBI, who has issued the show cause notice to the Appellants.;