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2023 (1) TMI 1258 - AT - SEBIFraudulent activities under SEBI - issue of 80,800 false share certificates, forging signatures of genuine investors on the transfer documents and verifying fake share certificate and forging signatures and approving fraudulent transfer etc. - WTM passed ex-parte ad-interim order - appellants were Directors and Promoters in company in the business of non-banking finance and also a stock broker on NSE and BSE - contention of the appellant is, that the impugned order was passed ex-parte without giving an opportunity of hearing - HELD THAT:- We find that the impugned order is an ex-parte ad-interim order which has been passed in terms of Section 11 in the interest of the investors. We find that admittedly the order directing the appellant to make an open offer as per the order dated 27th July, 2010 has not been complied with for more than ten years and, therefore, direction was given to the appellants to complete the process of the open offer within 60 days. Such direction so issued does not suffer from any error of law nor does the order amounts to penalising the appellant again for the same cause of action. WTM has calculated the value of the open offer and the amount which is to be paid to the shareholders/investors in terms of Regulation 15(2) of the Delisting Regulations. This amount was directed to be deposited as a safeguard which could eventually be utilised accordingly as and when the appellants makes the open offer. The amount so calculated is a tentative figure and if objected by the appellant can be rectified and revised on the basis of evidence that would be furnished by the appellant while passing a final order. It is for the aforesaid purpose that the appellant was given an opportunity to show cause as to why appropriate directions should not be issued under Section 11 and 11B. Thus WTM was justified in passing an ex-parte ad-interim order which can be modified provided an application is filed by the appellant objecting to the calculation. No manifest error in the order passed by the WTM.
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