Sebi bars GHCL promoters

For filing false shareholding details.

The Securities and Exchange Board of India (Sebi) has barred the promoters of soda ash maker Gujarat Heavy Chemicals (GHCL) from dealing in securities for allegedly violating various securities market laws including insider trading rules.

Those barred include chairman Sanjay Dalmia, managing director Ravi Shanker Jalan and company secretary Bhuwneshwar Mishra. There are 43 others who also cannot trade in securities until further orders.

The Sebi found the company guilty of filing false shareholding information of the promoters repeatedly over the four quarters of 2008. In fact, in the last three quarters of the year, the overstatement was by over 100%.

While the actual promoter shareholding according to the data given by the company's registrar was 19.4%, 18.02% and 18.74% at the end of June, September and December 2008, the company had informed the exchanges that the promoters held 40.4%, 40.3% and 38.32%, respectively during these periods.

Sebi said GHCL had misled the investors which is a serious offence by a listed company and its management.