INVESTIGATION DEPARTMENT


SUB: ORDERS UNDER SECTION 11B OF SEBI ACT, 1992 READ WITH REGULATION 11 OF SEBI (PROHIBITION OF FRAUDULENT AND UNFAIR TRADE PRACTICES RELATING TO SECURITIES MARKET) REGULATIONS, 1995 AGAINST RITESH POLYSTER LTD. AND ITS PROMOTERS AND PRATHA INVESTMENT CONSULTANTS

The Securities and Exchange Board of India (SEBI) has vide orders dated 9th February, 2004 directed Hyderabad-based M/s Ritesh Polyster Limited and its promoters viz Ritesh Exports Ltd., Shri Surendra Kumar Agarwal, Shri Roop Rekha Agarwal, Shri Ritesh Agarwal and Shri Deepak Agarwal to disassociate themselves from the capital market related activities and not to access the capital market for a period of ten years.
 
SEBI has also directed the above named promoters of Ritesh Polyster Ltd. to buy back the shares from the allottees/shareholders offering an amount at which the shares were issued i.e. Rs 15/- per share if the shares are fully paid or @ Rs. 7.50 per share if the shares are partly paid and delist Ritesh Polyster Ltd. from the stock exchanges. This is because the SEBI found that the public issue by the promoters in June,1995 was a hoax with an intention to perpetrate fraud on investors.
 
The Securities and Exchange Board of India (SEBI) has also passed a separate order directing M/s Pratha Investment Consultants and its proprietor Smt Sharmila Gang to disassociate itself the capital market related activities and not to access the capital market for a period of ten years. The penalty is imposed as Pratha Investment Consultants was found to have violated SEBI Act/ Regulations by aiding and abetting the promoters in bailing out the public issue and colluding with them in manipulating the price and volume of the scrip of Ritesh Polyster Ltd.