sebi:MO/68/IVD/08/04
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Facts / Headnote
Directions restraining Shri Murli Lekhraj and his group companies (SFPL, SDPL, JEPL) from accessing the securities market and dealing in securities for a specified period; no action against Shri Janak Vaswani for lack of sufficient evidence
Provisions invoked
- s. 11B
- s. 4(3)
- s. 169
Regulations
- Reg. 11
- Reg. 3
- Reg. 4
Parties
- Shri Murli Lekhraj
- Sanwa Finance Pvt. Ltd.
- Sanwa Development Pvt. Ltd.
- Shri Janak Vaswani
- Jayem Exports Pvt. Ltd.
Holding
Shri Murli Lekhraj, acting in concert with his group companies Sanwa Finance Pvt. Ltd., Sanwa Developments Pvt. Ltd. and Jayem Exports Pvt. Ltd., created an artificial/false market in UWBL shares through cross deals, thereby aiding and abetting price manipulation, and directions restraining them from accessing the securities market were issued. The allegation against Shri Janak Vaswani was not sustained for lack of sufficient evidence.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ 2. The Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) received complaints, including some anonymous complaints, which inter alia alleged price manipu the shares of UWBL. In view of the same, Chairman, SEBI, in exercise of powers conferred upon him under Section 4(3) of the SEBI Act, 1992, vide his orders dated 02. and 29.07.2003, ordered an investigation into the affairs relating to the buying, selling and dealing in the shares of UWBL.
Regulations, 2003 should not be issued against him inter alia for manipulating the price of the scrip of UWBL. In the said notice, SFPL, SDL JEPL and Shri Janak Vaswani w called upon to show cause why directions under Section 11B of SEBI Act, 1992 and Regulations 3 & 4 of SEBI (Fraudulent & Unfair Trade Practices relating to the securities Regulations, 2003 should not be issued against them for aiding & abetting Shri Murli Lekhraj in manipulating the price of the scrip. The said entities were advised to furn reply within 21 days of the receipt thereof and it was also indicated that if they failed to furnish their reply within the stipulated time, it would be presumed that they explanation to offer and that SEBI would take action as it deemed fit.
13. As stated above at para 3, I have noted that SSPL had traded on behalf of its own associate companies and relatives/ Directors and that these trades constituted a major perce the gross traded quantity for settlement nos.44 & 45 on NSE, period being from 25.10.00 to 7.11.00.
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Source: SecMarx — sebi:MO/68/IVD/08/04. 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.