sebi:11229
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Found guilty - restrained from associating with any corporate body in accessing the securities market and prohibited from buying, selling or dealing in securities for two years
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
Regulations
- Reg. 3
- Reg. 13
- Reg. 4(a)
- Reg. 12
Parties
- Mr. Girish Shah
- M/s. M.P. Investments and Finance Consultants (MPIFC)
Holding
Mr. Girish Shah was found guilty of violating Regulation 4(a), (b), (c), (d) and (e) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 for manipulation of GTFL scrip. He was restrained from associating with any corporate body in accessing the securities market and prohibited from buying, selling or dealing in securities, directly or indirectly, for a period of two years with immediate effect.
Full text
2. The price of the shares of GTFL, which was quoting at around Rs.52/- at BSE, as on 16.01.96, with a volume of 600 shares, moved up from this level and reached Rs.210/- as on 22.02.96, with a volume of 1,46,750 shares. On account of the sudden increase in volume and price, BSE had suspended trading in the scrip of GTFL on 24.01.96, 30.01.96 and 08.02.96. The share price came down to Rs.122/- by 15.03.96. However, the volumes were on the higher side, with the average daily volume being more than 1.50 lakh shares. The share price started moving up once again and reached to Rs.450/- by 16.05.96, with a volume of 18,600 shares. The last quotation was Rs. 420, on 06.06.96, after which the scrip was placed under indefinite suspension by BSE.
restraining him from accessing the capital market for a suitable period, should not be issued. It was also mentioned that if he failed to submit any reply within the stipulated period of 15 days then, it would be presumed that he had no evidence to adduce in the matter and SEBI would be free to take such action as it deemed fit. Mr. Girish Shah had submitted a reply to the show cause notices issued by SEBI on 08.10.03 stating that MPIFC does not belong to him and his name has been misrepresented for a fraudulent cause. He had also represented that he had inquired and got to know that MPIFC belonged to one Mr. Manish Pancholi, residing at 16/4, Babulnath Temple Road, Opp. Babulnath Temple, Mumbai 400 017.
j. Shifting the positions through unauthorized badla transactions from one settlement to another settlement with the help of the financier Mr. Sanjay Fathepuria. k. Delivering the shares of GTFL in the auctions conducted by the stock exchange, when the general investors failed to meet the pay in obligation of shares. l. Arrangements for collecting the contract notes, bills, cheques, delivery of shares(for the purchase position) etc., Similar arrangements were also made to issue cheques, delivery of shares (for the sale position) to the brokers. m. Arrangements for depositing the cheques issued by the brokers, favoring the clients appointed, towards the sale of GTFL shares in the respecting bank accounts. n. Arrangements for withdrawing the amount in cash terms after collection of the cheques. o. Co-ordination between the above mentioned entities, appointed for the exclusive purpose of manipulating the scrip price.
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Source: SecMarx — sebi:11229. 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.