Konkan Tyres Ltd. and its Promoters and Directors debarred

Sep 30, 2005
Press Releases

PRESS RELEASE


PR No.131/2005

Konkan Tyres Ltd.  and its Promoters and Directors debarred

Securities and Exchange Board of India (SEBI) vide order dated September 29, 2005 has issued the following directions in the matter of Konkan Tyres Ltd.(KTL):

The promoters and directors of KTL namely, S/ Shri O G Soni, Sunil Kumar Menon, Ramesh Kumar Putta, Fateh Sinh Solanki, Narayan N Iyerare, Smt Indu Omprakash Soni, Konkan Capfin Ltd, Olympic Agro Industries and  Esskey Rubber Industries Pvt. Ltd. are hereby directed not to buy, sell, pledge or deal in securities of KTL, directly or indirectly, till further directions in this regard. KTL is directed not to issue any equity shares or any other instrument convertible into equity shares or alter its capital structure in any manner till further directions in this regard.

That the brokers of BSE namely, Bhupendra M Bheda, Unique Stock Brokers Ltd. and DSE Securities Ltd. through whom the promoter entities have dealt are hereby directed not to buy, sell or deal in securities of KTL on behalf of the above-mentioned promoters and directors, directly or indirectly, till further directions in this regard.

All the above directions shall take effect immediately and shall be in force until further orders.

Upon preliminary enquiry it was found that the recent increase in price and trading volume in the shares of Konkan Tyres Ltd. is unprecedented and is not supported by the poor financial performance of the company. The company has been making a flurry of favourable corporate announcements in the recent past which has apparently increased the price and trading interest in the share of the company. The information so far collected by SEBI has raised doubts regarding the genuineness of the corporate announcements. The promoters of the company are found to have sold large quantities of shares around the time of making corporate announcements. In view of the grave emergency and to save the investors and the securities market from further fraudulent acts of the concerned entities the above orders were issued.

The full text of the order is available on the website: www.sebi.gov.in

 

Mumbai

September 30, 2005