sebi:MO/65/IVD/2/04

SEBI · SEBI · 2003-03-24 · A.K. Batra, Whole Time Member

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

Facts / Headnote

M/s Deluxe Polymers Ltd prohibited from accessing the securities market and from dealing in securities for a period of two years with immediate effect.

Provisions invoked

s. 11
s. 11(4)
s. 19

Regulations

Reg. 11
Reg. 4(a)

Parties

M/s Deluxe Polymers Limited

Holding

M/s Deluxe Polymers Ltd. was found to have violated Regulation 4(a), (b), and (c) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 by engaging in manipulative trades in the scrip of KSL and Industries Ltd., and was prohibited from accessing the securities market and dealing in securities for a period of two years.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Under Section 11(4) (B) And Section 19 Of SEBI Act, 1992 Read With Regulation 11 Of SEBI (Prohibition Of Fraudulent And Unfair Trade Practices Relating To Securities Market) Regulations, 2003 In The Matter Of M/S Ksl And Industries Limited Against M/s Deluxe Polymers Limited Feb 17, 2004 | Orders : Orders of Chairman/Members MO/65/IVD/2/04 SECURITIES AND EXCHANGE BOARD OF INDIA 10466 24 9 1. 2. 3. 4. 5. 6. 7. 1

FINDINGS 4.0 I have examined the findings of investigation as communicated in the show cause notice and the reply by DPL. On examination of the trading pattern during the relevant period I find that majority of trades were done by two brokers namely, Renaissance Securities Limited (hereinafter referred to as RSL) and R.R.Chokhani Shares & Stock Brokers (P) Ltd. As these brokers were found to have been involved in the price rigging of the scrip, BSE imposed a fine of Rs. 25,000 each on both the brokers as per the norms laid down by the disciplinary Action Committee (DAC) of the Exchange. I also find that the said fine was subsequently paid by DPL to the broker as evident from the statement given by Shri Jayesh Merchant, Authorised representative for M/s Deluxe Polymer and Ledger A/c of the broker, R.R. Chokhani where fine Rs.25,000 is debited to the account of Deluxe Polymers. 4.1 On an analysis of the clients’ details submitted by the brokers, I find that DPL and M/s Akash Fabrics Ltd. (hereinafter referred to as "AFL") were the main clients who traded in the shares of KSIL. DPL had purchased 1500 and total no. of shares sold by AFL were 1200. It is queer to note that between February 15, 1999 to March 15, 1999 the total volume of shares traded was only 1600 during which period, the price had gone up from Rs. 120 to Rs. 180/-. I find that DPL was involved in 94% of the total traded volume and the counter party seller i.e. AFL has traded in 75% of the total traded volume. It i

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Source: SecMarx — sebi:MO/65/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.