sebi:CO/112/ISD/09/2003

SEBI · SEBI · G. N. Bajpai, Chairman, SEBI

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Directions issued: noticees directed to dissociate from the capital market for 5 years and not deal in securities for 5 years

Provisions invoked

• s. 4(3)
• s. 11(4)

Regulations

• Reg. 11
• Reg. 3
• Reg. 6
• Reg. 4
• Reg. 13
• Reg. 5(1)

Parties

• M/s Raj Investments
• Ms. Praveena C Shah
• Ms. Sandhya S Shah
• Ms. Suniti N Shah
• Ms. Sheetal J Shah
• Mr. Jignesh N Shah

Holding

M/s Raj Investments and its partners were found to have aided, abetted and connived with D.K. Dalal and the promoters of NEAL in manipulating the price of the NEAL scrip and creating an artificial market, in violation of Regulations 5(1) and 6 of the 1995 Regulations. The noticees were directed to dissociate from the capital market and not deal in securities for a period of 5 years.

Full text

a.      NEAL did not receive the minimum required subscription to the public issue and the same was subscribed only to the extent of 14% and NEAL did not receive any real consideration and also utilized the proceeds of the public issue for arranging subscription and for circumventing the requirement of minimum subscription.

3.1             The following issues arise for consideration – 3.1.1       Whether Raj Investments had aided, abetted and indulged in manipulation of the price of the scrip of NEAL.

The dealings of Raj Investments are as under: 3.1.5       Further, Chandrakant Kantilal Shah, member BSE, has submitted that he had traded in the NEAL scrip on BSE for Raj Investments.  As per details submitted by him, the delivery given / taken by the broker and carry forward figures for Raj Investments are as follows:

Source: SecMarx — sebi:CO/112/ISD/09/2003. 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.