March 06, 2007
PR No. 88/2007

SEBI passes order against Bonanza Biotech Ltd. and its Directors

Securities and Exchange Board of India (SEBI) has passed an order against Bonanza Biotech Ltd. (BBL) and its Directors namely, Shri Sharad Gujarati, Shri Amit Patel, Shri Rakesh Pandya and Smt. Druma Vaghela, Shri Arvind Vaswani and Shri Manish Ganeriwala, directing them as under:

a) BBL and its directors shall not access the capital market, or buy, sell or deal in securities in any manner, directly or indirectly (except to the extent mentioned herein below) for a period of seven years from date of this order;
 
b) With a view to give exit opportunity to the entrapped public shareholders of Design Auto Systems Ltd. (DASL), who are saddled with unlisted shares aggregating in number to 98,21,074, BBL which was instrumental in offloading these shares fraudulently shall offer to purchase an equivalent amount of 98,21,074 DASL shares from such entrapped shareholders by making an offer at the higher of the prices to be determined on the following parameters:

i) the price paid for any acquisition made by BBL in the 26 weeks preceding the reference date;
 
ii) other parameters relating to shares of DASL including return on networth, book-value, earning per share, price earning multiple vis-�-vis industry average.

For the purpose of the offer contemplated in this direction, - 

i) The reference date shall be January 14, 2002 on which date BSE suspended trading in the DASL scrip. BBL shall also pay an interest of 10% from the said date till the date of payment of consideration to shareholders who tender their DASL shares pursuant to the offer. The promoters of DASL and other entities associated with DASL and BBL shall not participate in the offer.

ii) The offer through public announcement shall be made within a period of 30 days from the date of this order and the consideration shall be paid within a period of 90 days from the date of the public announcement.

iii) The provisions of Chapter III of the SEBI (Buyback of Securities) Regulations, 1998 shall, so far as may be, apply to and shall be complied with in respect of, such offer.

The order has been passed by Shri G. Anantharaman, Whole Time Member, SEBI, on March 06, 2007.
 

Mumbai

March 06, 2007

For full copy of order against AMIT PATEL, click here.

For full copy of order against ARVIND VASWANI, click here.

For full copy of order against BONANZA BIOTECH LTD., click here.

For full copy of order against DRUMA VAGHELA, click here.

For full copy of order against MANISH GANERIWALA, click here.

For full copy of order against RAKESH PANDYA, click here.

For full copy of order against SHARAD GUJRATHI, click here.