Order in the matter of M/s G-tech Info Trading Limited in respect of Mr. Shirish Shah
- Order No.WTM/PS/42/IVD/ID-03/OCT./2010
Ratio decidendi
The rule this decision rests on
Where a restraint order prohibiting a person from dealing in securities conflicts with a later direction requiring that person to take market steps to comply with a takeover obligation, the authority may, under sections 11, 11(4) and 11B read with section 19 of the Act, carve out of the earlier restraint the steps necessary for compliance with the later direction. The carve-out is to be made in the interest of investors and to give clarity, and it does not lift the restraint for any other purpose.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/PS/42/IVD/ID-03/OCT./2010 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA CORAM: PRASHANT SARAN, WHOLE TIME MEMBER IN THE MATTER OF M/S G-TECH INFO TRAINING LTD. IN RESPECT OF MR. SHIRISH SHAH ORDER UNDER SECTIONS 11, 11B AND 11(4) OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 1. The Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) vide Order dated August 18, 2010, had directed Sicorp Finlease Ltd. through its director Mr. Shirish Shah, Ms. Sandhya Shirish Shah, Ms. Pravina Chandrakant Shah, Mr. Prasad Tandel, Mr. Prashant Narvekar, Mr. Ashok Sonu Bhagat and Mr. Prakash D’Souza to make a public announcement to the shareholders of the company namely G-Tech Info Training Ltd., within 45 days from the date of the said Order, in terms of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.
2. Subsequently, Mr. Shirish Shah had vide letter dated September 28, 2010, informed SEBI that he had been restrained from buying, selling or dealing in securities market, directly or indirectly, for a period of three years by SEBI vide an earlier Order dated July 19, 2010, in the matter of G.G. Automotive Gears Ltd. and submitted that there appears to be a conflict between the aforesaid SEBI Orders. According to Mr. Shirish Shah, the direction contained in the Order dated August 18, 2010, is an exception to the Order dated July 19, 2010. In such circumstances, in the interest of investors and for the purpose of clarity on the issue, the following addendum to the Order bearing no. WTM/PS/36/IVD/ID-3/AUG/2010 is issued.
3. Therefore, I, in exercise of the powers conferred upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 read with Sections 11, 11(4) and 11B thereof, hereby direct that, notwithstanding the restraint imposed on Mr. Shirish Shah vide Order dated July 19, 2010, in dealing in the securities market, he shall be permitted to take necessary steps for the due compliance of the Order dated August 18, 2010.
4. This Order shall come into force with immediate effect.
DATE : 5/OCT/2010 PRASHANT SARAN PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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