SEBI passes final order on PG Electroplast case
MDT/PTI 06 September 2012

SEBI barred Alfa Fiscal Services and its directors -- Hardik R Bagadia and Bhavesh Natwarlal Sheth from the securities market, except allowing Sheth to sell other securities held in his demat account

New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has passed the final order in the matter of alleged irregularities committed by Alfa Fiscal Services and its two directors related to the initial public offering (IPO) of PG Electroplast, reports PTI.

 

SEBI's order comes a week after SAT directed the market regulator to expedite decision on the case.

 

The market regulator has barred Alfa Fiscal Services Private Ltd and its directors -- Hardik R Bagadia and Bhavesh Natwarlal Sheth from the securities market.

 

However, Sheth has been allowed to sell the securities other than shares of PGEL, held by him, if any, in his demat accounts, the final order said.

 

The Securities Appellate Tribunal (SAT) on 29th August had directed SEBI to pass final orders within two weeks in the case related to irregularities in the IPO and trading of the shares of PG Electroplast and another case.

 

In its final order, SEBI said it was upholding the interim order -- issued on 28 December 2011 -- that barred Alfa Fiscal Services and the two directors from the securities market.

 

SEBI said it was confirming the "directions issued vide the ad interim ex-parte order dated 28 December 2011 in matter of IPO of PG Electroplast Ltd against Alfa Fiscal Services Private Ltd and its director Hardik R Bagadia and modify the directions issued vide the said order against Bhavesh Natwarlal Sheth...".

 

The modification is only to the limited extent of allowing Sheth to sell the securities other than shares of PGEL.

 

According to the order, Sheth shall deposit sale proceeds, in case of any sale, in a bank fixed deposit earning interest and he shall not be allowed to withdraw monies from the said account including interest without the prior permission of SEBI.

 

During its probe into alleged irregularities in the IPO and trading of the PG Electroplast Ltd shares, SEBI prima facie found that investment company Alfa Fiscal Services and the two directors traded in that scrip with an intention to push the share price higher.

 

Alfa Fiscal Services and the directors -- Bagadia and Sheth -- approached SAT on the issue.

 

The appellants submitted to SAT that SEBI's action of not having passed a final order, despite a lapse of more than 7 months, is a major irregularity on the part of the regulator and calls for the order to be set aside.

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