INVESTIGATIONS, ENFORCEMENT AND SURVEILLANCE DEPARTMENT

Securities and Exchange Board of India (SEBI) carried out investigations into the allegations of manipulation in the public issue of equity shares by M/s. Anik Ship Breaking Industries Ltd. (M/s. ASBIL) in the year 1996. The investigation of SEBI has revealed that M/s. ASBIL entered into a tacit buy back arrangement with a set of persons with an intention to ensure the minimum subscription. The promoters and directors of M/s. ASBIL did not co-operate with SEBI during the investigation process. 

SEBI has considered all the relevant facts of the case and vide its Order dated October 23, 2002, SEBI has directed that the directors of M/s. ASBIL viz. Shri A B Lakhani, Shri P P Bhuta, Shri C P Bhuta, Shri I B Lakhani and Shri R K Irani to disassociate themselves from the capital market related activities and not to access capital market for a period of five years. Further, SEBI has also directed that the public companies in which the above individuals hold substantial or controlling interest shall not be allowed to raise funds from the public.