SEBI Vs. ANIK SHIP BREAKING INDUSTRIES LIMITED
SECURITIES APPELLATE TRIBUNAL
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(1.) M/s Anik Ship Breaking Industries Ltd. (herein after referred to as ASBIL), came out with a public issue of 1, 09, 31,100 equity shares of Rs. 10/- each for cash at par vide its prospectus dated January 31, 1996. The Issue opened on February 27, 1996 and closed on March 9, 1996. There were allegations of market manipulation as there was unusual trading in the scrip between 25-06-97 and 23-12-97
(2.) While carrying out preliminary investigation, it was observed that certain related entities with possible arrangement with M/s. ASBIL, had made applications in the public issue of M/s. ASBIL (with the mode of payment being in the form of stock invests) with the funding for these stock invests coming directly / indirectly from M/s. ASBIL. Accordingly a detailed investigation was undertaken into the possible violations, interalia, of the SEBI Disclosure and Investor Protection Guidelines and SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995
It was found that the directors of ASBIL, Shri A. B. Lakhani, Shri P.P. Bhuta, Shri C.P. Bhuta, Shri I.B. Lakhani and Shri R.K. Irani manipulated the public issue to create an illusion of full subscription. Hence it was directed vide orders dated October 23, 2002 that these directors should disassociate themselves in every respect from the capital market related activities and that they should not access the capital market for a period of five years. It was also directed that the public companies in which the above directors hold controlling or substantial interest shall not be allowed to raise funds from the capital market for a period of five years.
(3.) INVESTIGATIONS further revealed that the following persons invested in the public issue through stock invests.
1. M/s R R Investments, B - 42, Mehta House, Off New Link Road Andheri (W), Mumbai - 400 053
2. M/s Deepal Corporation, Mehta House, I Floor, B-42, Veera Industrial Estate, Off New Link Road, Andheri (West), Mumbai - 400 053
3. Ms. Deepal Mehta,Mehta House, I Floor, B-42, Veera Industrial Estate, Off New Link Road, Andheri (West), Mumbai - 400 53
4. Mr. Ramesh Shah A/601, Gazdar Apartments,Juhu Tara Road, Near Juhu Centaur, Juhu-Vile-Parle, Mumbai - 400 049;
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