The Hindu Business Line : SEBI debars Top Line Shoes, Directors

THE Securities and Exchange Board of India (SEBI) has debarred Top Line Shoes Ltd and its Directors, Mr H.M.B. Murthy and Mr H.M.G. Murthy, from accessing the securities market for a period of five years. The public companies in which the directors hold controlling or substantial interest are also not allowed to raise funds from the capital market for a period of five years, according to the order.

The company, which made a public offer of 46.5 lakh shares of Rs 10 each, is now not physically traceable at its registered office address at Vadodara, and has also not been complying with the listing agreement, according to the order.

With respect to the former directors of the company, Mr Duleep Singh, Mr Sunil M Gavaskar, Mr Vinod B. Mistry and Mr Arun L. Kapani, the order noted that while they were directors of Top Line Shoes, the company had filed balance sheets and otherwise complied with requirements of the listing agreement and since they are no longer directors of the company, they are not responsible for the conduct of the company.

In a similar order, SEBI has also debarred Nuline Glassware Ltd (now known as Pur Opale Creation Ltd) and its Directors - Mr Jayesh Dave, Ms Anjali Dave, Mr Jagdish Chandra Dave, Ms Madhuben Dave, Mr Rohit Vyas, Mr Himanshu Desai, Mr Kamlesh Mankodi and Mr Umesh Soni - from accessing the securities market for five years. This company is also not physically traceable and is not complying with the listing agreement.

The company had made a public offer of 67.79 lakh shares of Rs 10 per unit in December 1992.

"Unless Nuline Glassware Ltd (NGL) and its directors are restrained from accessing the capital market for a period of five years, there is every possibility that they may again raise money from the investors and defraud investors.

"However, notwithstanding such restraint, the directors of NGL may resort to floating new companies, acquiring existing companies or using companies in which they hold substantial interest to raise money from the public. Hence, it is necessary to take preventive measures restraining companies in which directors of NGL have controlling or substantial interests from directly or indirectly raising moneys from the capital market," says the order passed by Mr T M Nagarajan, Whole-Time Member, SEBI.

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SEBI debars Top Line Shoes, Directors