sebi:15298

SEBI · SEBI · 2001-02-26 · Madhukar, Whole Time Member

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Facts / Headnote

Noticees found in violation of Regulation 4(d) of FUTP Regulations, 1995; restrained from associating with any corporate body in accessing the securities market and from buying, selling or dealing in securities for a period of one year

Provisions invoked

Regulations

Parties

Holding

The Desai Group consisting of Mayekar Investments Pvt. Ltd., Shagufta Investments Pvt. Ltd., Pankaj A. Desai, Praful A. Desai and Darshan Desai indulged in circular and fictitious trading in the scrip of AITL in violation of Regulation 4(d) of FUTP Regulations, 1995, and are restrained from associating with any corporate body in accessing the securities market and from buying, selling or dealing in securities for one year.

Full text

IN THE MATTER OF TRADING IN THE SCRIP OF AVINASH INFORMATION TECHNOLOGIES LTD. 1.0 BACKGROUND 1.1 Securities and Exchange Board of India ( hereinafter referred to as “SEBI”) conducted investigations in the scrip of M/s. Avinash Information Technologies Ltd. (formerly known as M/s. Mangalya Exports Ltd. and hereinafter referred to as “AITL” ) for the period from February 26, 2001 to May 18, 2001. 1.2 Investigations revealed that AITL had sales of Rs.4.4 lacs and showed a loss of Rs.5.01 lacs for the year ended March 1999. In the next year i.e. during 1999-2000, AITL showed a loss of Rs.9.67 lacs on a sale of Rs.1.73 lacs. Again, during the year ended March 2001, it showed a loss of Rs.25.89 lacs on sales of Rs.135.02 lacs. For the year March 2002 also the company had shown losses. Thus it was seen that the company was a loss incurring company. Investigation further revealed that during the period February 26, 2001 to April 20, 2001, 2,40,500 shares of the scrip were traded and the price came down from Rs.118 on February 26, 2001 to Rs,.54.15 on April 20, 2001. During the period April 23, 2001 to May 18, 2001 the total volume traded was 1,86,800 shares during which the price went up from Rs.58.45 on April 23, 2001 to Rs.134.65 on May 17, 2001. 1.3 Investigation further revealed that Mayekar Investments Pvt. Ltd. (sub broker to R. D. Shah, Member BSE), Shagufta Investments Pvt. Ltd. (both having common director in Mr. Pankaj Desai), Praful Desai and Darshan Desai (hereinafter re

AND DARSHAN DESAI Date Name of Buy Member Buy Client Buy Order Trade time Sell Order Sell Client Selling Member Qty Rate

2.5.01 Geojit Sec. Ltd. Darshan P. Desai 100 79.95 14:50:18 14:50:18 100 79.95 14:50:06 Mayekar Inv. R D Shah 2.5.01 Geojit Sec. Ltd. Darshan P. Desai 200 80.75 14:51:14 14:51:15 200 80.75 14:50:57 Mayekar Inv. R D Shah 2.5.01 R D Shah Mayekar Investments 200 80.85 14:51:45 14:51:46 200 80.85 14:51:30 Darshan P. Desai Geojit Sec. Ltd. 2.5.01 Geojit Sec. Ltd. Darshan P. Desai 200 80.75 14:59:05 14:59:05 200 80.75 14:58:22 Mayekar Inv. R D Shah 2.5.01 R D Shah Mayekar Investments 100 80.9 14:59:43 14:59:43 100 80.85 14:59:35 Darshan P. Desai Geojit Sec. Ltd. 2.5.01 R D Shah Mayekar Investments 100 80.85 15:00:05 15:00:06 100 80.85 14:59:35 Darshan P. Desai Geojit Sec. Ltd. 2.5.01 R D Shah Mayekar Investments 300 80.8 15:09:45 15:09:46 200 80.85 15:09:39 Darshan P. Desai Geojit Sec. Ltd. 2.5.01 Geojit Sec. Ltd. Darshan P. Desai 100 80.85 15:10:16 15:10:16 100 80.85 15:10:03 Mayekar Inv. R D Shah 2.5.01 Geojit Sec. Ltd. Darshan P. Desai 100 80.85 15:10:31 15:10:03 100 80.85 15:10:03 Mayekar Inv. R D Shah 2.5.01 Geojit Sec. Ltd. Darshan P. Desai 100 80.85 15:10:52 15:10:31 100 80.85 15:10:03 Mayekar Inv. R D Shah 2.5.01 R D Shah Mayekar Investments 100 80.9 15:11:21 15:11:21 100 80.85 15:11:10 Darshan P. Desai Geojit Sec. Ltd. 2.5.01 Geojit Sec. Ltd. Darshan P. Desai 100 80.85 15:11:46 15:11:47 100 80.85 15:11:41 Mayekar Inv. R D Shah 2.5.01 Geojit Sec. Ltd. Darshan P. Desai 100 80.85 15:11:59 15:11:59 100 80.85 15:11:41 Mayekar Inv. R D Shah 2.5.01 Geojit Sec. Ltd. Darshan P. Des

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