MUMBAI, March 20: The Securities and Exchange Board of India (SEBI) today held a Vadodara-based company, Rich Paints Limited (RPL), guilty of fraudulent and unfair trade practices and directed the company to refund the paid-up capital to the public with 15 per cent interest.The five promoters -- Mahendra Shah, Rakesh Shah, Bharatiben Shah, Subodh Chandra Bhagat and Rashmikant B Shah -- have been debarred by SEBI from accessing the capital market for a one year period from March 23.
Investigations into complaints received by SEBI revealed that the minimum subscription of 90 per cent was not received for its public issue of 32,38,100 equity shares of Rs 10 for cash at par in April 1996. The promoters had failed to bring in their contribution of Rs 1.22 crore and had approached a financier to arrange for subscription with the understanding they would buy back the shares.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
