sebi:IES/ID2/RKK/868/02
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Facts / Headnote
M/s Cross Investments prohibited from accessing capital market for a period of One Year and directed not to deal in securities for a period of One Year, with effect from October 20, 2002.
Provisions invoked
- s. 11B
Regulations
- Reg. 11
- Reg. 4(a)
Parties
- M/s Cross Investments
Holding
M/s Cross Investments was found to have violated Regulation 4(a) of the SEBI (Prohibition of Fraudulent & Unfair Trade Practices relating to the Securities Market) Regulations, 1995 read with the SEBI Act, 1992, and was prohibited from accessing the capital market and dealing in securities for a period of one year.
Full text
from SEBI. It was seen that the price rise in the scrip was not in consonance with the fundamentals of the company, GCCL. Investigations revealed that, M/s Khandwala Finstock Pvt. Ltd., member ASE, had transacted in the scrip of GCCL in large quantities on BSE and ASE. It was seen that, M/s Khandwala Finstock Pvt. Ltd. had transacted in the scrip mainly on behalf of you i.e. M/s Cross Investments. The details of transactions done by you in the scrip of GCCL through M/s Khandwala Finstock Pvt. Ltd. are as under : Settlement No. Gross Purchase Gross Sale Net Quantity 9538 26300 26300 0 9539 55900 0 55900 (P) 9542 0 70000 70000 (S) 9543 1000 13200 12200 (S) 9604 94900 100000 5100 (S) 9605 145300 54600 90700 (P) 9606 287300 250900 36400 (P) Total 610700 515000 95700 (P) From the above table, it can be seen that, you had purchased 6,10,700 shares of GCCL and sold 5,15,000 shares of GCCL on gross basis resulting in a net purchase position of 95,700 It was seen that, you had purchased 6,10,700 shares of GCCL and sold 5,15,000 shares of GCCL on gross basis resulting in a net purchase position of 95,700 shares during the aforesaid settlement periods i.e. your transactions in the scrip of GCCL were in significant quantities on gross basis as well as net basis, which disturbed market equilibrium and created artificial volume in otherwise ill-liquid scrip. In view of this, summons were issued to you to appear in person and attempts were also made to collect information in respect of tran
Pursuant to investigations show-cause notice no. IES/ID2/RKK/ 868/02 dated January 16, 2002 was issued to you for violation of the provisions of Regulation 4(a) of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995. Copies of the aforesaid show-cause notice were also sent to your all the available addresses. Further, an attempt was also made to send the aforesaid show-cause notice to you through M/s. Khandwala Finstock Pvt. Ltd. brokers through whom you have dealt in the scrip of GCCL. An opportunity for personal hearing was also granted to you vide letter dated August 16, 2002 to appear on August 26, 2002. However, neither you submitted any reply to the show-cause notice nor attended the personal hearing granted to you. Thus, it was observed that, though you were given opportunity to explain your position, you did not avail the same. I have carefully examined documents, facts and material on record. I find that the charges leveled against M/s Cross Investments are substantiated. It is seen that, M/s Cross Investments transacted in the in the shares of GCCL in significant quantities which resulted in disturbing market equilibrium and artificial increase in price and creation artificial volume in otherwise ill-liquid scrip. I, therefore find that, M/s Cross Investments have violated the provisions of Regulation 4(a) of the SEBI (Prohibition of Fraudulent & Unfair Trade Practices relating
2002. Place : Mumbai Date : October 14, 2002 G. N. BAJPAI Chairman Securities and Exchange Board of India
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Source: SecMarx — sebi:IES/ID2/RKK/868/02. 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.