sebi:MO/99/IVD/01/06
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Facts / Headnote
Warning issued to M/s. Prabhudas Lilladher Private Limited to be careful in carrying on activities and to avoid such activities in future
Provisions invoked
- s. 19
- s. 12
Regulations
- Reg. 7
- Reg. 13
Parties
- M/s. Prabhudas Lilladher Private Limited
Holding
PLPL was warned for technically violating SEBI circulars by dealing with unregistered sub-broker JBSPL for a short period, while being held not guilty of willfully dealing in unlisted shares or offloading promoter shares.
Full text
Page 2 of 11 3. In addition to that OTPL had also made preferential allotments of 1,00,00,000 shares, 78,80,000 shares and 3,00,00,000 on 1st August 2000, 3rd August 2000 and 23rd November 2000 respectively, as per information provided by the Vadodara Stock Exchange (hereinafter referred to as VSE). These shares were listed on VSE on 5-10-2000, 25-10-2000 and 15-12-2000 respectively. OTPL made further allotment of 5,00,00,000 shares on swap basis on 19th October, 2000, however, these were not listed at any exchange. The preferential allotment of 60,00,000 shares as detailed above and other preferential allotments subsequent thereto were not listed at The Stock Exchange, Mumbai. The preferential allotment of 60,00,000 shares was, however, listed on VSE on 17th January 2000.
Page 3 of 11 Rajesh N. Jhaveri, member ASE; and Shri Rajesh N. Jhaveri in turn have traded for Mrs. Hansaben J. Shukla and sold 10,27,800 shares at different rates during the given period. JBSPL was not a registered sub broker while dealing in the scrip of OTPL through PLPL.
Page 4 of 11 C. Whether the Broker is guilty of dealing with unregistered sub- broker. A. The first issue is whether the broker had dealt in unlisted shares I find from the investigation report that the broker had a gross purchase of 6,24,000 shares and a gross sell position of 18,69,500 shares. All the transactions in the scrip were undertaken by their sub-broker Jyotish Bhogilal Stock Brokers Pvt. Ltd., who is Members of ASE. It is alleged that the broker has dealt in shares which were unlisted. The broker in reply to this allegation has stated that the bad delivery occurred because of late intimation by the exchange. I have gone through the notice No. 25810/99 dated 15th September, 1999 issued by the exchange informing the members that with effect from Thursday, the 16th September, 1999, the new securities of Ojas Technochem Products Limited are listed on the exchange. I have also gone through the notice no.39806/2000, February 02, 2000, issued by BSE which is in continuation of its previous notice No. 25810/99 stated alone. I have noted that vide the said notice BSE informed the members that the correct distinctive number of 8,40,150 equity shares allotted to promoters and their relatives on preferential basis is 80,10,901 to 88,51,050 and not as stated in the aforesaid notice. It was also intimated by the exchange that these shares were not transferable upto 16th July, 2001 and would not be good delivery in the market till that period. It is further brought out by the me
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Source: SecMarx — sebi:MO/99/IVD/01/06. 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.