sebi:CO/113/ISD/09/2003
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: Vrushti Financial Services Pvt. Ltd and its Directors Shri Shailesh Thakkar and Shri Keyoor M. Bakshi directed to dissociate themselves from the capital market for 5 years and not deal in securities for 5 years.
Provisions invoked
- s. 4(3)
- s. 11
Regulations
- Reg. 4
- Reg. 3
- Reg. 6
- Reg. 13
- Reg. 11
- Reg. 5(1)
Parties
- M/s Vrushti Financial Services Pvt. Ltd
- Shri Shailesh Thakkar
- Shri Keyoor M. Bakshi
Holding
Vrushti Financial Services Pvt. Ltd and its Directors 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, in violation of Regulations 4, 5(1) and 6 of the 1995 Regulations, and were directed to dissociate from the capital market and not deal in securities for 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.
Rs.46 till 31.8.95, the price fell to Rs.19.50 on 14.9.95. It varied in the range of Rs.25 and 51 between 25.9.95 and 22.12.95. The opening price on 2.1.96 was Rs.46. Thereafter, the price of the scrip showed an increasing trend and went up to Rs.84 on 8.2.96. It then showed a continuous downtrend to end at Rs.11 on 15.5.96.
the scrip of NEAL and in creating an artificial market for the same. 3.2 In this regard, I note that Regulation 4 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 1995 (hereinafter referred to as “the said regulations”) provided that:
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Source: SecMarx — sebi:CO/113/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.