https://www.taxtmi.com/caselaws?id=467447 SEBI examined a coordinated preferential allotment and subsequent share-sale pattern and found that the funding moved through intermediary and connected entities in circular transactions, with the consideration effectively routed back to the issuer and related parties. It also found that newspaper advertisements and corporate announcements on buy-back, bonus issue and preferential allotment were issued at the proposal stage, were internally inconsistent, and created artificial trading interest through misleading market signals. The connected allottees, having acquired 70.25% of the post-allotment capital, were treated as acting in concert and as having breached disclosure and open-offer obligations under takeover rules. The conduct was characterised as fraudulent, manipulative and unlawful substantial acquisition. en-us Thu, 31 Jul 2014 00:00:00 +0530 Thu, 19 Mar 2026 11:21:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467447 SEBI examined a coordinated preferential allotment and subsequent share-sale pattern and found that the funding moved through intermediary and connected entities in circular transactions, with the consideration effectively routed back to the issuer and related parties. It also found that newspaper advertisements and corporate announcements on buy-back, bonus issue and preferential allotment were issued at the proposal stage, were internally inconsistent, and created artificial trading interest through misleading market signals. The connected allottees, having acquired 70.25% of the post-allotment capital, were treated as acting in concert and as having breached disclosure and open-offer obligations under takeover rules. The conduct was characterised as fraudulent, manipulative and unlawful substantial acquisition. Case-Laws SEBI Thu, 31 Jul 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467447