sebi:CO/79/ISD/11/2004

SEBI · SEBI · 2004-02-19 · G N Bajpai, Chairman

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

Facts / Headnote

Restrained M/s Manoj Kumar Tibrewal from accessing the securities market and from dealing in securities for a period of 2 years, effective immediately.

Provisions invoked

• s. 11B
• s. 4(3)
• s. 11
• s. 11(4)

Regulations

• Reg. 11
• Reg. 4
• Reg. 1

Parties

• Manoj Kumar Tibrewal

Holding

The said broker violated Regulation 4(a) and (b) of the FUTP Regulations by executing cross deals for connected entities that contributed to the creation of an artificial market in DSQ Industries shares, and was restrained from accessing the securities market and dealing in securities for 2 years.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER Order under Section 11B and Section 11(4)(b) read with Section 4(3) of the Securities and Exchange Board of India Act, 1992 and Regulation 11 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to the Securities Market) Regulations, 1995 against Manoj Kumar Tibrewal in the matter of DSQ Industries Limited CO/79/ISD/11/2004 1.0             Background 1.1             DSQ Industries (now known as “Jardine Overseas Limited”) is a company listed on the Calcutta Stock Exchange (hereinafter referred to as “CSE”) and was formerly kn Lexus Overseas Limited. 1.2             During the period January 2, 2000 to March 14, 2000 the price of the scrip of DSQ Industries on the CSE witnessed a sharp spurt. During the said period, the scrip wa traded with average daily volumes being only around 500 shares. The above factors led to a suspicion of price manipulation and creation of artificial market. Theref Securities and Exchange Board of India (hereinafter referred to as “SEBI”) called for details of trading from the stock exchange and also conducted an investigation matter. 1.3             In the course of investigation, it was observed that a few brokers of CSE traded among themselves mostly through cross deals increased the price of the scrip from Rs.1 January 6, 2000 to Rs.428/- on March 14, 2000. It was also observed that all the transactions are synchronized deals. It was furth

1.1 DSQ Industries (now known as “Jardine Overseas Limited”) is a company listed on the Calcutta Stock Exchange (hereinafter referred to as “CSE”) and was formerly known as Lexus Overseas Limited. 1.2 During the period January 2, 2000 to March 14, 2000 the price of the scrip of DSQ Industries on the CSE witnessed a sharp spurt. During the said period, the scrip was thinly traded with average daily volumes being only around 500 shares. The above factors led to a suspicion of price manipulation and creation of artificial market. Therefore, the Securities and Exchange Board of India (hereinafter referred to as “SEBI”) called for details of trading from the stock exchange and also conducted an investigation into the matter. 1.3 In the course of investigation, it was observed that a few brokers of CSE traded among themselves mostly through cross deals increased the price of the scrip from Rs.104/- on January 6, 2000 to Rs.428/- on March 14, 2000. It was also observed that all the transactions are synchronized deals. It was further observed that almost all the transactions were done for DSQ group entities and hence the price rise was not only artificial but also tantamount to creation of artificial market and circular trading. 1.4 An analysis of the trading details of March 16, 2000 revealed that the following trades were undertaken by Manoj Kumar Tibrewal (hereinafter referred to as “the said stock broker”) a stock broker registered with SEBI under certificate of registration No.

M. Tibrewal & Co. M. Tibrewal & Co. 16.03.2000 12:57:49 PM - do - B 10000 424 - do - 16.03.2000 12:58:40 PM - do - B 10000 424 - do - 16.03.2000 12:58:40 PM - do - S 10000 424 - do - 16.03.2000 12:59:35 PM - do - B 10000 424 - do - 16.03.2000 12:59:35 PM - do - S 10000 424 - do - 16.03.2000 1:00:02 PM - do - S 10000 424 - do - 16.03.2000 1:00:02 PM - do - B 10000 424 - do - 16.03.2000 1:00:29 PM - do - B 10000 424 - do - 16.03.2000 1:00:29 PM - do - S 10000 424 - do - 16.03.2000 1:00:50 PM - do - B 10000 424 - do - 16.03.2000 1:00:50 PM - do - S 10000 424 - do - 16.03.2000 1:01:08 PM - do - S 10000 424 - do - 16.03.2000 - do - B 10000 424 - do -

Source: SecMarx — sebi:CO/79/ISD/11/2004. 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.