SEBI bans M/s.Gammon India Ltd from selling its stake in GIPL for 3 years

Shri G.Anantharaman, Whole Time Member, SEBI has passed an order on December 21, 2006 prohibiting M/s. Gammon India Ltd., Shri Abhijit Rajan, M/s. Nikhita Estate Developers Pvt. Ltd., and M/s. Devyani Estate & Properties Pvt. Ltd. from divesting, transferring, selling or alienating in any manner of their stake in M/s. Gammon Infrastructure Projects Ltd. (GIPL) for a period of three years from the date of allotment of shares in the public issue of GIPL. It has also been directed that M/s. Gammon India Limited, Shri Abhijit Rajan, M/s. Nikhita Estate Developers Pvt. Ltd., M/s. Devyani Estate & Properties Pvt. Ltd. shall not access the capital market directly or indirectly for period of one year from the date of this order. It has further been directed that M/s. Reliance Silicones (I) Pvt. Ltd. shall not access the capital market directly or indirectly for period of one year from the date of this order.

The order has been passed against the entities for violations of the SEBI (Prohibition of Fraudulent and Unfair Trade practices relating to securities market) Regulations read with section 77 of the companies Act, 1956, observed to have been committed by these entities in the matter of rights issue of M/s. Gammon India Ltd. in the year 2001.

Source : Equity Bulls

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