INSUBCONTINENT EXCLUSIVE:
New Delhi: Markets regulator Sebi has barred Trinity Tradelink Ltd, its senior officials and promoters from accessing securities market for
three years for allotting equity shares in violation of public issue norms.
During a probe, Sebi found that Trinity Tradelink, which was an
unlisted company, merged with a listed firm Omnitech Petroleum Ltd
The name of Omnitech was later changed to Trinity Tradelink Ltd.
Prior to the amalgamation, the erstwhile Trinity had engaged in fund
mobilising activity from public, through offer of equity shares.
It had allotted shares aggregating up to nearly Rs 26 crore on 23 instances
between December 2011 and March 2012 to a total of around 978 allottees.
The allotment of equity shares by the erstwhile Trinity is deemed
to be a public issue and the firm was mandated to comply with public issue norms prescribed under the Companies Act, 1956
However, it failed to do so, Sebi noted.
The erstwhile Trinity was never listed on the stock exchange, and amalgamated itself with a listed
entity, Omnitech.
By virtue of the same, the applicants in the deemed public issue of erstwhile Trinity became shareholders in Omnitech and
these shares got listed on the stock exchange, Sebi said.
Provisions of the Companies Act "do not provide for such a mechanism, wherein the
body corporate that has issued securities can merge itself with a listed entity and then list the allotted shares"
"the intent of the
Noticees in entering into a scheme of arrangement was to circumvent the process envisaged under Section 73 and to avoid the disclosures
required to be made when filing a prospectus and applying to the stock exchanges for listing permission," it added.