SEBI bars Atlanta promoters from shares dealing

Mumbai, Feb 25: Market regulator SEBI has barred promoters of Atlanta from buying or selling shares in the company with immediate effect.

The SEBI, in its preliminary order, has said the promoters, Rajhoo Bbarot and family, have allegedly misused public funds as indicated by the accounting irregularites in the company's books.

The SEBI has initiated formal investigations in the case and has directed the exchanges not to approve the listing of Atlanta's convertible warrants.

Atlanta had got listed on the NSE and the BSE last September at a price of Rs 170 and has been steadily rising since then, a broker said.

Meanwhile, Atlanta managing director Rajhoo Bharot has said the company will take legal recourse with regard to the SEBI order.

''We will contest the facts with respect to the promoter group in the order. SEBI has given us 15 days time for clarification. This is an ex-parte interim order, which has been passed by SEBI and there are certain averments, which are not at all substantiated or supported by any evidence,'' he said.

Mr Bharot said there are also certain punctually incorrect statements. ''We got the copy of this order yesterday evening. We are taking legal advice and will be taking the legal recourse for setting aside of this interim order,'' he added.

UNI