May 02, 2000
PR No. 88/2000

Direction under Section 11 B of SEBI Act, 1992 against Shri Rajesh Gupta

Primary Market department

Chairman, SEBI has issued a direction on April 6, 2000 under section 11 B of the SEBI Act, 1992 debarring Shri Rajesh Gupta, a director of M/s Sungrow datasoft Pvt Ltd. ( formerly known as Elite Computer Technics Pvt Ltd.) from associating with the capital market related activities , dealing in securities , accessing the capital market and associating with any of the intermediaries in the capital market for a period of 5 years . Shri Rajesh Gupta was instrumental in committing irregularities in the public issues of M/s Karan Finance Ltd., M/s Mahanivesh (India) Ltd., M/s Geefcee Finance Ltd. and M/s Kalyani Finance Ltd., the irregularities interalia fraudulent incorporation of the company, mis -statements in the prospectus, non existence of registered office of the company and fabricated auditors reports and financial projections. 

Facts on record indicate that Shri Rajesh Gupta apparently colluded with Shri Traun Goyal and made Elite Computer Technics Pvt Ltd a party to the afore said public issues. SEBI( Registrars to an issue and Share Transfer Agent ) Rules and Regulations, 1993 lay down the Code of Conduct for Registrar to an issue and Share Transfer Agents, while vesting responsibilities on Registrars to an issue. The code of conduct, interalia, requires RTI to act with due skill, diligence and care in conduct of all their activities. It is expected of them to meet the directors of the issuing company and ensure that they are going to be associated with genuine issues, before accepting the assignment. No due diligence was exercised by Shri Rajesh Gupta while accepting the assignments and he had acted recklessly in collusion with Shri Tarun Goyal in becoming a party in committing the above said irregularities.