SEBI's found various SMSs circulating in the market mentioning buy recommendation for SMS Techsoft were used by its promoters and directors to offload the company shares
Market regulator Securities and Exchange Board of India (SEBI) has barred 37 entities including Rajesh Mangilal Ranka, SMS Techsoft (India) Ltd, the company’s three promoters, V Jagdish, Akash Jagdish Vital and Anitha V Jagdish as well as three independent directors, Dashrathkumar Khatri, Dilipbhai Gajjar and Devraj Pera Naidu from accessing securities market.
SEBI said it had, suo moto, carried out an examination in the scrip of SMS Techsoft in view of various SMSs circulating in the market during February-March 2013 mentioning therein buy recommendation for the scrip of SMS Techsoft. The probe found that the promoters and directors of SMS Techsoft were acting in concert with one Rajesh Ranka by issuing new equity shares of the company through preferential allotment to certain connected entities without receipt of full consideration. These entities had offloaded the shares through a fraudulent manner.
During the examination, SEBI said it found SMS Techsoft issued 3 crore shares to 31 entities, including three promoters, who are related to Rajesh Mangilal Ranka, that too when Ranka in 2010 was barred by the market regulator for two years.
"The sequence of events and pattern of transactions in this case prima facie indicate that the company, its promoters/directors along with the Ranka Group, by falsely portraying the transactions as a genuine preferential allotment and by creating artificial volume the company, adopted fraudulent device and artifice to defraud the genuine shareholders of the company," SEBI said in the order.
Earlier in August, SEBI had passed an order in a separate case where action was taken against persons luring investors through SMSes with promise of daily returns of up to Rs75,000 through mobile messages.
While in the earlier case the investors were being lured for unauthorised investment products, the present case pertains to promoters of a listed company being involved as well with the spread of SMSes.
Samruddha Jeevan Foods and its directors are barred from raising money from investor under any of its schemes. SEBI also asked them not to dispose of any assets or divert funds raised from public
Market regulator Securities and Exchange Board of India (SEBI) has asked Samruddha Jeevan Foods India Ltd and its directors Mahesh Kisan Motewar, Vaishali Mahesh Motewar and Ghanshyam Jashbhai Patel not to collect money from investor.
In an order, S Raman, whole time member of SEBI directed the company and its directors "not to collect any more money from investors including under the existing schemes, not to launch any new schemes, not to dispose of any of the properties or alienate any of the assets of the schemes and not to divert any funds raised from public at large which are kept in bank account(s) and/or in the custody of the company."
SEBI said Samruddha Jeevan Foods was prima facie found to be engaged in fund mobilising activity from public by floating 'collective investment schemes' (CIS) as defined in Section 11AA of the SEBI Act.
Major expenses are mostly pre-planned. If they are unplanned, they may cause a deeper hole in our pocket that may be difficult to stitch quickly unless you follow simple and basic principles of investing throughout
A major expense may not only set us back financially but also psychologically. We may feel akin to having swum onshore aboard a sinking ship. There is cheer that a major task may have been accomplished but there is also despair that we may not know how to recoup our financial energy quickly.
Major expenses are mostly pre-planned. If they are unplanned, they may cause a greater hole in our pocket that may be difficult to stitch quickly.
I recently met a well educated (IIM graduate) professional, who had just been through a major medical expense (for his father). He asked me for help in reconstructing his financial future.
I tried my bit in enlightening him to start his investments engine with simple and basic principles. Strangely enough, he was unaware of the majority of following principles:
(Akshay Gupta is managing director and chief executive of Peerless MF)