SEBI has passed consent order on the application submitted by Mahesh Khanna, Neeru Khanna and Sunita Khanna (applicants) in the matter of Atlanta Ltd. in accordance with SEBI Guidelines dated April 20, 2007 for consent orders.

SEBI had initiated proceedings under Sections 11 B of SEBI Act, 1992 and adjudication proceeding under Chapter VI A of SEBI Act, 1992 against the applicants, among others, who were found to have fraudulently cornered the shares of Atlanta Ltd. reserved under employee quota in the IPO of Atlanta Ltd. It was found that the applicants had provided funds to the employees of the company for subscribing in the IPO shares on their behalf, which upon allotment were transferred by the employees to them by way of off-market transfers at the issue price, though the market price was substantially higher. The above applicants had applied for settlement of above proceedings through a consent order.

Above applicants have remitted altogether Rs.3,07,466/- (Rupees three lakh seven thousand four hundred and sixty six only) being the profit made, and Rs.61,534/- (Rupees sixty one thousand five hundred and thirty four only) towards settlement charges as consent terms in the case.

A Panel comprising of Whole Time Members, SEBI, M. S. Sahoo and Dr. K.M. Abraham has passed consent order dated August 25, 2009.