Decided on February 12,2003



G.N.Bajpai, - (1.) M/s. Adinath Exim Resources Ltd., an Ahmedabad based company had come out with a public issue of 31,00,000 equity shares of Rs. 10/- each at par aggregating to Rs 310 lakhs. The said issue opened for subscription on 18.01.96 and closed on 22.01.96. Corporation Bank was the Banker to the Issue.
(2.) On the basis of the complaints received regarding late acceptance of applications by the Corporation Bank, Industrial Banking Branch, Ahmedabad (hereinafter referred to as "Banker"), Securities and Exchange Board of India (hereinafter referred to as "SEBI") requested Reserve Bank of India (hereinafter referred to as "RBI") to ascertain whether there were instances of late receipt of applications by the Banker. On the basis of date-wise schedule for applications received by the banker, RBI observed that the applications of one Shri Rakesh Naval for 20,000 shares at Sr. No. 10 was subsequently included after striking the day's total on page 8 of the application schedule dated 22.01.96. It was also noted that the banker prepared the revised copy of the schedule wherein two more applications of Shri Ajit Jain and Shri C M Singhi for 20,00,000 shares each were included at serial nos. 101 and 102.
(3.) RBI also observed that applications numbering at serial nos. 100, 101 and 102 were with stockinvests which were issued by Tamil Nadu Mercantile Bank Ltd., Mandvi Branch, Mumbai on 29.01.96 and 30.01.96 but the same were predated as 22.01.96. The report further observed that even current account was opened on 24.01.96 and deposits were received on 29.01.96 and 30.01.96 for obtaining such stockinvests. Therefore, it was concluded that these three applications have been received by the said banker after the date of closure of the issue, i.e., after 22.01.96.;

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