Markets regulator Sebi Wednesday barred CAT Technologies, seven company directors and promoters from capital markets for five years in a matter related to manipulation in issuance of global depository receipts (GDR).
According to a Sebi order, the firm issued GDRs in 2007 and 2009 which were subscribed by only Vintage FZE, now known as Alta Vista International FZE, on both occasions and CAT Technologies did not submit correct list of GDR subscribers to the regulator.
Sebi observed that the subscription amount for GDR was paid by Vintage after obtaining loan from European American Investment Bank (EURAM).
However, the loan paid by Vintage was secured by pledge agreement between CAT and EURAM Bank.
"CAT Technologies with the aid of its directors, etc. had conceived the fraudulent arrangement with Vintage with regard to the subscription of GDR issues and submitted incorrect/concealed information to Sebi," the regulator noted.
Regarding directors, the regulator said they were aware of the arrangements entered into by the company with Vintage and Euram through the pledge and loan agreements, which violated Companies Act as well as PFUTP (Prohibition of Fraudulent and Unfair trade Practices) Regulations.
Accordingly, Sebi barred CAT Technologies, directors -- Dhiraj Kumar Jaiswal, Laxmi Pershad Jaiswal, Dinesh Kumar Jaiswal, Dhaduvai Venkatram, Kesava Mallikarjuna Prasad Chivukula and Ashok Kulkarni -- and promoter Espirit Technologies Pvt Ltd for five years from securities market.
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