DEPUTY GENERAL MANAGER
INVESTIGATION DEPARTMENT
IVD/ID6/BM/DM/ /05
October 18, 2005
Atul Hiralal Shah
108, Chandanbala Apartments,
Parle Point, Surat. Gujarat.
Ph. 0261-2223913
Sub: Supplementary show cause Notice under section 11(4) read with 11 & 11B of Securities and Exchange Board of India Act, 1992 in the case of Genus Commutrade Limited.
Securities and Exchange Board of India (hereinafter called SEBI) conducted investigations on the dealings in the scrip of Genus Commutrade Ltd. (hereinafter called the company) for the period 1st May 2002 to 31st September 2002. This is supplementary to the Show Cause notice IVD/ID6/BM/DM/51846/05 dated October 14, 2005 issued to you in the matter of your dealings in the scrip Genus Commutrade Ltd.
1. Charge IV
Rakesh Ramniklal Sheth and Atul H Shah had violated the disclosure requirements as per Regulation 10 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997 by not disclosing their positions to the exchanges/ not giving the statutory when they exceeded the limits prescribed while they were dealing in the scrip Genus Commutrade Ltd.
a. Rakesh Ramniklal Sheth was continuously violating the provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 1997. He received a total of 27 lakhs shares of the company in 13 and 14 September 2002 from Atul H Shah which amounts to more than 20 percent of the total listed capital of the company. He was not following any procedures stipulated by the law to declare his holding on the scrip to the company while acquiring the shares through the above mentioned Off-Market deals. Taking together the positions of his two DP accounts, Rakesh Ramniklal Sheth, during the month of September 2002, had violated the disclosure requirements as per Regulation 10 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997. See the following table for details.
|
Rakesh Ramniklal Sheth's Total position on Genus Commutrade
|
|
Date
|
Balance in 10029763
|
Balance in 10006574
|
Total Balance
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Percentage to total Shares
|
Total No Of Shares
|
|
9/13/2002
|
500,300.00
|
1650
|
501,950.00
|
4.96
|
10129500
|
|
9/13/2002
|
300,300.00
|
1650
|
301,950.00
|
2.98
|
10129500
|
|
9/14/2002
|
297,700.00
|
1650
|
299,350.00
|
2.96
|
10129500
|
|
9/14/2002
|
1,297,700.00
|
800650
|
2,098,350.00
|
20.72
|
10129500
|
|
9/16/2002
|
1,282,700.00
|
800650
|
2,083,350.00
|
20.57
|
10129500
|
|
9/16/2002
|
1,782,700.00
|
775650
|
2,558,350.00
|
25.26
|
10129500
|
|
9/17/2002
|
1,032,700.00
|
625650
|
1,658,350.00
|
16.37
|
10129500
|
Note: The Highlighted cells show the days with more than 15% holding on the subject Company.
b. Atul H Shah also received 578456 shares from Santosh Gaykwad, 75171 shares from Raju B Shah on August 7, 2002; 277544 shares from Piyush Jhaveri, 14850 shares from Jyodish Bhogilal. All of these transactions were made through off market deals. In receiving these shares he exceeded the threshold limits as per SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997 at many instants, with out complying with the disclosure requirements. In doing these deals Atul H Shah have violated the regulation 10 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997. (See the following table). A copy of transaction statement of Shri Atul.H Shah is given as Annexure 1.
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Date
|
No. Of Shares
|
% to total
|
Total Listed Shares
|
|
8/7/2002
|
Opening balance
|
0
|
0
|
|
8/7/2002
|
2428627
|
23.98
|
10129500
|
|
8/8/2002
|
2576677
|
25.44
|
10129500
|
|
8/29/2002
|
2576677
|
25.44
|
10129500
|
|
9/4/2002
|
2526677
|
24.94
|
10129500
|
|
9/6/2002
|
2725896
|
26.91
|
10129500
|
|
9/7/2002
|
2725896
|
26.91
|
10129500
|
|
9/9/2002
|
2721996
|
26.87
|
10129500
|
|
9/12/2002
|
2756796
|
27.22
|
10129500
|
|
9/13/2002
|
1799221
|
17.76
|
10129500
|
2. In view of the above you are hereby called upon to show cause as to why suitable actions under section 11 and section 11B of SEBI Act, 1992 should not be initiated against you, including directions restraining / debarring you from accessing capital market in any manner for a suitable period should not be issued.
Your reply along with the documentary evidence, if any, should reach us within 21 days of the date of receipt of this notice. While replying you may also indicate whether you desire to be personally heard in this case so as to give you an opportunity of personal hearing. In case no reply is received from you, within the above specified period, it shall be presumed that you have no further explanations/submissions to offer in this regard and the matter shall be dealt with as per law.
Barnali Mukherjee
Annexures 1/1
1. The copy of transaction statement of Shri Atul.H Shah.