Khemkas debarred from accessing markets

MUMBAI, AUG. 4. The Securities and Exchange Board of India (SEBI) has debarred the Chennai-based Khemka's and their group companies from accessing the capital market for five years for violation of regulations and listing agreements.

The acquirers (Khemka's) while making an open offer to public shareholders of Skyline NEPC, formerly known as Damania Airways, had failed to comply with time schedule (for offer and payments), SEBI said in a release. The Khemka group comprising Mr. Ravi Prakash Khemka, Mr. Rajkumar Khemka, Mr. Ratan Kumar Khemka, Mr. Tripathi Kumar Khemka and Mr. Madusudan Khemka acquired 12.50 lakh shares (3.89 per cent of capital) from the promoters of Damaina Airways (DAL) were asked to make open offer to public shareholders for 20 per cent of the voting capital (64.66 lakh shares) of DAL.

However, the offer to the public (September 24, 1995) was made at Rs. 19.60 per share value was less than the price paid to acquire 3.89 per cent stake of DAL promoters, SEBI said. They were asked to raise the offer price to Rs. 35.25 per share. The offer opened on February 1 and closed on February 29, 1996. The total consideration payable for the 64.66 lakh shares was Rs. 22.80 crores. The acquirers agreed to pay the consideration by March 28, 1996, but, they failed to comply with the directives and sought extension of time.

- PTI

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Section  : Business
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