sebi:10356

SEBI · SEBI · 2005-03-01

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Facts / Headnote

Interim order restraining promoters, directors, persons acting in concert, related clients and brokers from buying, selling or dealing in securities of Ind Tra Deco Ltd. pending investigation; depositories directed not to give effect to transfers; objections and personal hearing opportunity granted within 15 days.

Provisions invoked

• s. 11(4)
• s. 11(1)
• s. 19

Regulations

• Reg. 13

Holding

SEBI issued an interim order restraining promoters, directors, persons acting in concert, related clients and brokers from dealing in securities of Ind Tra Deco Ltd. pending investigation into suspected market manipulation and unfair trade practices.

Full text

result of unfair trade practices or market manipulation. Such trading has been under the surveillance of SEBI and the stock exchanges to determine whether the trading volumes and price rise have been the result of unfair trade practices or market manipulation. One such company whose shares have shown a significant increase in prices as well as trading volumes is Ind tra deco Ltd. whose shares listed at BSE, witnessed a sharp price variation during the period March 2005 to September 2005. The share price of the company went up from a below par level of Rs.5.81 on March 01, 2005 to Rs.22.65 (adjusted price for split shares) on September 01, 2005 in 129 trading days representing a rise of 4 times or 390%. 1.2 Since 2002, the shares of the company have traded below par at Rs. 4. The price of the shares took momentum in the month of July 2005. Thus the share remained traded at below par price for nearly three years. As the shares of the company are listed in the ‘Z-category’ the settlement of the trades is on trade for trade basis. In view of the price rise in the scrip BSE reduced the circuit filter in the shares from 20 % to 10% with effect from August 19, 2005, as a part of BSE’s normal surveillance measure. 1.3 The steep increase in price of the share which was trading below par value for more than 3 years warranted an immediate examination of the dealings in the share, which was accordingly undertaken by SEBI. The major findings of the

The company – business, board of directors, shareholding pattern 2.1 The registered office of Ind tra deco Ltd. (hereinafter referred to as ‘the company’) is located at Gandhi Bldg, 2nd Fanaswadi, Dadyseth Agiary Lane, Mumbai - 400002 – Maharashtra. The company’s shares are listed on The Stock Exchange, Mumbai, currently BSE Ltd. (BSE), The share is currently trading in ‘Z’ group in BSE. 2.2 The Board of Directors of the company as follows: Praful K Rokadia Chairman Kaushika P Rakodia Director Pradeep R Shroff Director Uma A Shah Director Arvind M Shah Additional Director In the Extra Ordinary General Meeting held on August 25, 2005, Shri Dipal P Rokadia was appointed as the Managing Director of the company for the period of five years with effect from September 01, 2005. Jayaben T Dalal, the Director, resigned from the directorship of the company on September 13, 2005 2.3 The shareholding pattern of the company as on June 30, 2005 . is as follows:

Table 1: Shareholding pattern as on June 30, 2005 As on June 30, 2005 No of Shares % Share Holding Indian Promoters · New Dimension Finance & Investment Pvt. Ltd · Rosa Construction Pvt. Ltd · Sun Flower Estate Pvt. Ltd · Krunal Industrial Estate Development Pvt. Ltd 4400980 28.00 Persons acting in Concert · Varsha Industrial Township Organisers Pvt. Ltd · Jignesh Industrial Land Developer Pvt. Ltd · Fours Walls Marketing India Pvt. Ltd 3398551 21.62 Private Corporate Bodies 991087 6.31 Indian Public 6925982 44.07 Total 15716600 100.00 Source:BSE

Source: SecMarx — sebi:10356. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.