 The Supreme Court has held that the chairman of Securities and Exchange Board of India (SEBI) has the power to debar a company from associating with any corporate body to have an access to the share market and also prohibiting their company or its director from buying, selling or dealing in securities.
A bench comprising Justices G S Singhvi and Asok Kumar Ganguly upheld the order of SEBI debarring the joint managing director of Trident Steel Ltd, Ajay Agarwal from entering share market for five years because of misrepresentation made by him while floating a public issue for sale of 52 lakh shares of Rs 10 each at a premium of Rs 3.50 per share to aggregate Rs 7,02,00,000 on May 20, 1993.
The company did not disclose in its prospectus that the directors of the company have pledged their 7,00,50,000 shares to avail the working capital from Bank of Baroda.
|
