Sebi bans GHCL,promoters for giving wrong info

The Securities and Exchange Board of India has banned Gujarat Heavy Chemicals Limited and its promoters from dealing in shares for giving incorrect information about shareholding pattern until further orders. In an order,Sebi directed “GHCL Limited its promoter entities,Sanjay Dalmia,Chairman,Shanker Jalan,Managing Director and Bhuw- neshwar Mishra,Company Secretary of GHCL Limited 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. Sebi 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 had filed false shareholding of the promoters repeatedly over the four quarters of 2008,thereby misleading the investors about commitment of the promoters towards the company which is a serious offense by a listed company and its management,since investors rely only on the public disclosures made by the company,Sebi said. Earlier,six promoter entities of GHCL were debarred by Sebi for creation of false and misleading appearance of trading in GHCL. GHCL is a global chemical and textile company. The company specialises in manufacturing of soda ash which is an essential ingredient used in soaps,detergents and glass.