SECURITIES AND EXCHANGE BOARD OF INDIA

ORDER DEBARRING THE BRANCH OF M/S PUNJAB NATIONAL BANK SITUATED AT RELIEF ROAD, AHMEDABAD FROM CARRYING ON ACTIVITY AS BANKER TO AN ISSUE FOR A PERIOD OF 6 MONTHS.

SEBI had ordered an investigation into the public issue and buying, selling or dealing in the shares of M/s Dhanlaxmi Lease Finance Ltd. The Punjab National Bank was acting as a Banker to the public issue of M/s Dhanlaxmi Lease Finance Ltd.


During the course of investigation it was found that one of the branch of Punjab National Bank situated at Relief Road, Ahmedabad accepted the application forms of M/s Dhanlaxmi Lease Finance Ltd. after closure of the issue and failed to exercise due diligence in weeding out multiple, benami applications. It was also observed that the said branch failed to maintain the date-wise records of number of applications received, names of investors and the amount received.


After considering the facts emerging from the investigation report, an Enquiry Officer was appointed to enquire into the contravention, if any, of the provisions of SEBI (Bankers to an Issue) Regulations, 1994 by M/s Punjab National Bank in the public issue of M/s Dhanlaxmi Lease Finance Ltd.

Pursuant to completion of Enquiry proceedings, show-cause notice was issued and opportunity for hearing before Chairman was granted. After consideration of the submissions as well as the facts and circumstances of the case, the branch of M/s Punjab National Bank situated at Relief Road, Ahmedabad has been debarred from carrying on activity as Banker to an Issue for a period of 6 months.