Sebi bans Classic Diamonds' 14 promoters for 1 year from mkts

Sebi today banned 14 promoter entities of Classic Diamonds (India) from the securities market for one year for violating takeover regulations.
The regulator observed in an order that the promoter entities had acquired shares of the firm on several occasions between the quarters ending September 2005 and December 2009 without making any public announcement for open offer to company's shareholders.
According to Sebi, the promoter entities were together holding 55 per cent or more but less than 75 per cent shares or voting rights in Classic Diamonds (India) during the quarters ending September 30, 2005 to December 31, 2009.
As per SAST (Substantial Acquisition of Shares and Takeovers) Regulations, the promoter entities could have acquired additional shares or voting rights in the firm only after making a public announcement to acquire shares.

As the promoter entities have "not made any public announcement," they have violated the takeover regulations, Sebi said in an order.
The 14 promoter entities are Kumar Chandrakant Bhansali, Mayank Ramniklal Mehta, Rita Kumar Bhansali, Bhavana K Bhansali, Baiju K Bhansali, Nirav K Bhansali, Rupen Bhansali, Sona Bhansali, Ankur Bhansali, Gopi K Bhansali, Yogesh K Kaji, Diamax Investment & Finance, Aarohi Diamonds and Hiren Shah.

The regulator dropped proceedings against three other promoter entities -- Chandrakant Manilal Bhansali, Urmila C Bhansali and Kaushik Bhansali -- as they have passed away.
Since winding up proceedings against the company have already commenced, the regulator decided not to ask the entities concerned to make an open offer.

Ruling out the issuance of a direction to make an open offer, the Securities and Exchange Board of India considered the suitability of issuance of other directions indicated in the takeover regulations.
Accordingly, Sebi said that the 14 promoter entities "are restrained from accessing the securities market and further prohibited from buying, selling or dealing in securities... for a period of one year".
In a separate order, the regulator barred West Coast Breweries and Distilleries and its three directors from the capital market for failing to redress investor complaints within the specified time.
According to Sebi, the company has failed to redress 26 investor grievances pending against it.

The firm and its directors -- Lal Goel, Avi Prakash Mittal and Virendra Kumar Singh -- have been restrained from accessing the securities market till the company resolves all the pending investor grievances.