GHCL: share dealing banned by SEBI

Market regulator SEBI banned Gujarat Heavy Chemicals Limited (GHCL) and its promoters from dealing in shares for giving incorrect information about shareholding pattern on 20 April 2009.
SEBI ordered…

Market regulator SEBI banned Gujarat Heavy Chemicals Limited (GHCL) and its promoters from dealing in shares for giving incorrect information about shareholding pattern on 20 April 2009. SEBI ordered GHCL Ltd., its promoter entities, Sanjay Dalmia chairman, Shanker Jalan managing director, Bhuwneshwar Mishra company secretary of GHCL Ltd., not to buy, sell or deal in the securities market until further orders. The ban order has been imposed on a total of 46 entities. The market regulator has also directed the company to reconcile and file the correct shareholding details with the stock exchanges. SEBI had received complaints alleging that GHCL had been reporting false shareholding details of promoters in their quarterly filing with the Stock Exchanges, the regulator said. GHCL continuously filed false shareholding of the promoters over the four quarters of 2008, thereby misleading investors with regards to commitment of the promoters towards the company, a serious offense by a listed company and its management, since investors rely exclusively on public disclosures made by the company, SEBI said. GHCL is a global chemical and textile company, specialized in the manufacture of soda ash which is an essential ingredient used in soaps, detergents and glass.