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2015 (8) TMI 528 - AT - Companies LawRestraining from Accessing securities – Several complaints from investors regarding non receipt of “Composite Application Forms” for subscribing to rights issue of company and several other discrepancies were noticed by which access to security was stayed – Held that:- Since appellant No.1 had floated rights issue, it was primary responsibility of appellant No.1, to ensure that CAFs were dispatched in manner specified under regulation 54(1) of ICDR Regulations, 2009 – Since appellant No.1 failed to discharge that responsibility, appellant cannot escape from liability – Admittedly advertisement was issued and verified by appellant No.1 therefore appellant no. 1 was liable for error in advertisement – Further 2 out of 4 cheques of appellant No.2 aggregating to ₹ 23.75 crore bounced despite knowing fully well that funds were insufficient – SEBI was empowered under Section 11(4) of SEBI Act, 1992 to restrain persons found violating regulations framed by SEBI – Appeal dismissed – Decided against appellant.
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