sebi:MO/63/IVD/2/04
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Facts / Headnote
Prohibition from dealing in securities for a period of one year
Provisions invoked
- s. 11B
- s. 11
- s. 19
Regulations
- Reg. 11
- Reg. 4
- Reg. 4(a)
- Reg. 15
Parties
- M/s Jalaram Enterprises
- Shri Sanjay Damani
Holding
M/s Jalaram Enterprises and its proprietor Shri Sanjay Damani were prohibited from dealing in securities for a period of one year for violating Regulation 4(a) to (d) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 and the Code of Conduct for Sub Brokers.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against M/s Jalaram Enterprises Feb 11, 2004 | Orders : Orders of Chairman/Members MO/63/IVD/2/04 SECURITIES AND EXCHANGE BOARD OF INDIA
sellers in the scrip are connected to the company as their names appear as top share holders/Directors of the company. 1.1 Based on this preliminary information, detailed investigation was conducted by SEBI to look into the affairs relating to buying, selling and dealing in the shares of M/s. V B Desai Financial Services Ltd. (hereinafter referred to as “VB Desai”) for the period October 04, 1999 to May 31, 2000. 1.2 Investigations revealed that Shri Kamlesh Jitendra Shroff (KJS), son of Shri Jitendra Ratilal Shroff of VB Desai and nephew of Shri Pradip Ratilal Shroff, promoter and Managing Director of VB Desai was the main person behind the trading activity in the scrip throughout all the settlements during the investigation period. He had used a number of brokers, sub brokers (both registered and unregistered) as well as acquaintances to buy and sell the scrip of VB Desai in the market, thereby creating illusion of trading, artificial volume and price rise in the scrip. M/s Jalaram Enterprises, a registered sub-broker, had dealt essentially on behalf of its client Shri Kamlesh Shroff (KJS) SHOW CAUSE NOTICE FOR THE ALLEGED VIOLATIONS OF SEBI (PROHIBITION OF FRAUDULENT AND UNFAIR TRADE PRACTICES RELATING TO SECURITIES MARKET) REGULATIONS, 1995 2.0 A show cause notice dated July 22, 2003 was issued to M/s Jalaram Enterprises (“Jalaram”) whereby the findings of investigations and the alleged violation of Regulation 4(a) to (d) of SEBI (Prohibition of Fraudulent and Unfair Trad
REPLIES TO SHOW CAUSE NOTICES. 3.0 A reply dated September 23, 2003 was sent by Shri Sanjay Damani, proprietor, Jalaram, whereby he denied the violations alleged against him in the show cause notice. He submitted that all the transactions were done by him in the normal course of business and were carried out by him on account of “KJS”. He also denied having any intention of manipulation when the transactions were done. He also denied having any nexus with “KJS” as alleged in the show cause notice. In view of his submissions, he requested SEBI not to prohibit him from buying, selling or dealing in securities. HEARING AND WRITTEN SUBMISSIONS. 4.0 An opportunity of hearing was granted to Jalaram in adherence to principles of natural justice. The hearing was initially scheduled on October 01, 2003, which was communicated to him vide letter dated September 22, 2003. Since the other persons / entities had sought for adjournment, the matter was heard on October 29, 2003 at 5.00 p.m. Jalaram was represented by Mr. Sanjay Damani. He submitted that he had nothing to say more than what was stated in the statements recorded during investigation.
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Source: SecMarx — sebi:MO/63/IVD/2/04. 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.