sebi:Settlement_Orders_226_Order_in_the_matter_of_Global_Trust_Bank
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Facts / Headnote
Interim ex-parte order dated 31.12.2002 vacated; directed to henceforth cease to operate against the named entities
Provisions invoked
- s. 4(3)
- s. 11
Regulations
- Reg. 11
Holding
The ex-parte ad-interim order dated 31.12.2002 restraining the named entities from dealing in shares of Global Trust Bank Ltd. was vacated and directed to cease to operate against them.
Full text
Hem Securities Ltd. Panther Fincap Management Services Ltd. Indsec Securities and Finance Ltd. Latin Manharlal Securities Limited Panther Fincap Management Services Ltd. Milan Mahendra Securities Limited Panther Fincap Management Services Ltd. N H Securities Limited Panther Fincap Management Services Ltd. Woodstock Securities Limited
C J Dalal Panther Fincap Management Services Ltd. Millenium Equities Limited Panther Fincap Management Services Ltd. 1.3 During the course of investigations it was prima facie revealed that the promoter group entities sold substantial no. of shares i.e. around 1,31,00,000 shares by way of synchronized / structured deals to entities owned by or associated with Shri Ketan Parekh (KP entities) around the same period. It was further prima facie found that KP entities used these shares to create artificial market and to manipulate price later during the period November 1999 to February 2000 prior to preferential allotment in March 2000. The price of the shares of Global Trust Bank Ltd. appeared to be manipulated during the period October 2000 to February 2001 i.e. prior to announcement of proposed merger of Global Trust Bank Ltd. with UTI Bank. Certain KP entities, broking entities associated with KP entities, clients of KP entities and certain other broking entities were prima facie found to have indulged in price manipulation, creation of artificial market in the scrip of Global Trust Bank Ltd and some of these entities were used to park shares to circumvent SEBI (Substantial Acquisition of shares and Takeover) Regulations, 1997 2.0 Interim Order
3.0 Consideration of Issues I have considered the submissions of the said entities and also material on record. I note that investigations have been completed as against the entities mentioned in para 2.1 supra. I find from the investigation report that there is no material available therein to establish beyond reasonable doubt that the said entities have abetted the K P entities or the promoters of GTB in manipulating price and volume of the shares of GTB. In view of the above and in view of the fact that the investigations are complete, I find that the continuation of the interim order dated 31.12.2002 as against these entities is no longer required.
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Source: SecMarx — sebi:Settlement_Orders_226_Order_in_the_matter_of_Global_Trust_Bank. 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.