sebi:CO/377/IES/11/2002
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Prohibition order — Shri Madanlal Jain prohibited from dealing in securities market in any capacity for a period of two years with effect from 25th November, 2002
Provisions invoked
- s. 11B
- s. 4(3)
- s. 11
Regulations
- Reg. 4
- Reg. 4(a)
Parties
- Shri Madanlal Jain
Holding
Shri Madanlal Jain was held to have violated Regulation 4(a) to 4(d) of the SEBI (Prohibition of Fraudulent And Unfair Trade Practices Relating to Securities Markets) Regulations, 1995 by creating a false market in MIL shares through sales and purchases through various brokers, and was prohibited from dealing in the securities market in any capacity for two years from 25th November, 2002.
Full text
l As per the statement recorded on oath, Shri Madanlal Jain had stated that Shreyas Securities & Finance Ltd. (SSFL), member - MPSE had arranged subscription in the public issue of MIL through their investors and they wanted to sell the shares in the market. l In statement recorded on oath, Shri Madhusudan Jain, Managing Director of MIL and nephew of Shri Madanlal Jain had mentioned that the dealings of SSFL could be the possible reason for the rise in the price of MIL shares. l The public issue of MIL got subscribed with the help of SSFL by extending inter corporate deposit in advance of public issue to SSFL by MIL. l After the scrip was listed, in association with SSFL and promoters of MIL, friends and relatives, Shri Madanlal Jain started to transact in the scrip. SSFL traded in MIL through three brokers namely M/s. M K Poladia (BSE member), M/s. Saurashtra Capital Services Pvt. Ltd. (BSE member) and Arihant Fincap Ltd.(NSE member). The transactions at the counters of M/s M. K. Poladia and M/s Saurashtra Capital Services Pvt. Ltd. were routed through sub-brokers namely Neeraj Investment and Allied Shares & Securities, respectively. l Shri Madanlal Jain had admitted to have purchased 25,200 shares of MIL at Rs.43.85 on March 9, 1997 from SSFL in an off-market deal, when the market price for the share was around Rs.63 to Rs.75. Further, Shri Madanlal Jain did not pay any money for purchase of these shares nor did he lodge these shares with the company for transfer in his n
reportedly executed by Shri Madanlal Jain’s nephew, Mr. Madhusudan Jain. l Thus, after creating market for the shares of MIL through various brokers, Shri Madanlal Jain and his family members and associates offloaded shares in the market, either directly or through third parties.
The above is in addition to 50,000 shares reportedly offloaded through Shri Sanjay Talati in BSE/NSE on behalf of promoters and their associates.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:CO/377/IES/11/2002. 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.