The Telegraph
 
 
IN TODAY'S PAPER
CITY NEWSLINES
 
 
ARCHIVES
Since 1st March, 1999
 
THE TELEGRAPH
 
 
Email This Page
Tayals slapped two-year ban on share deals

Mumbai, July 9: The Securities and Exchange Board of India (Sebi) has debarred Pravin K. Tayal, Navin K. Tayal and Sanjay K. Tayal, promoters of KSL & Industries Ltd (formerly Krishna Texport), from dealing in securities for two years for irregularities relating to public issue of Pashupati Cables Ltd (PCL).

Sebi chairman G. . Bajpai has also directed KSL and Tayals to dissociate themselves from the capital markets for a two-year period, a Sebi release said here today.

PCL came out with a public issue of 80.33 lakh equity shares of Rs 10 each aggregating Rs 80.33 crore in 1996. As per the reports of Kanoria Securities and Financial Services Ltd, the lead manager to the issue, it was fully subscribed.

However, Sebi received a complaint from one Pramod Kumar Agarwal alleging irregularities in the allotment and delivery of shares. On March 31, 1998, Sebi directed that an investigation be conducted into the matter.

As per the findings of the investigation report, it was “prima facie” found that KSL & Industries Ltd had arranged finance to subscribe to 60 lakh shares of PCL, aggregating Rs 3 crore. KSL had acted in concert with PCL and Empey Finance and Investment Pvt Ltd with the objective of bailing out the issue and to get PCL shares listed on the BSE without any actual inflow of fund, Sebi said.

Show-cause notices were issued to KSIL and its four promoters, Ram Pratap Tayal, Pravin K. Tayal, Navin K. Tayal and Sanjay K. Tayal on August 5, 2002. In the course of hearing before the chairman, counsel for KSIL submitted that Sebi cannot impose penalties under Section 11B of the Sebi Act.

Subsequently, KSIL stated that the show-cause notice refers to acts/violations allegedly committed in February, 1996. It is therefore grossly delayed and on that ground is required to be recalled.

On the basis of the investigations Sebi said, “KSIL has indulged in activities that were planned and executed for the purpose of creating an illusion of over-subscription merely for the purpose of getting the shares of PCL listed on the stock exchange. By falsely suggesting an over subscription when in fact there was a shortfall in subscription, KSIL has deceived the general public and stock exchanges.”

Further, the actions of KSIL have tended to lower the integrity of the securities market and sought to adversely affect the confidence of investors and the credibility of the securities market.

However, when contacted by The Telegraph, P. K. Tayal, who heads Bank of Rajasthan, said they would appeal against the Sebi order. “We are not dealing in shares,” he said.

Top
Email This Page