sebi:WTM/GA/114/ISD/12/06

SEBI · SEBI · 2002-12-31 · G. Anantharaman, 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

Show cause notice dated June 16, 2004 disposed off with no further directions against the noticees

Provisions invoked

• s. 11
• s. 19

Regulations

• Reg. 4
• Reg. 11
• Reg. 4(b)
• Reg. 2

Parties

• Shri. Ashok Mittal
• Ashok Mittal & Co.
• Claridges Investments & Finance Pvt. Ltd.

Holding

The show cause notice dated June 16, 2004 against Shri Ashok Mittal, Ashok Mittal & Co. and Claridges Investments & Finance Pvt. Ltd. is disposed off with no further directions, as the evidence was insufficient to hold them guilty of violating Regulation 4(b).

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER 10331 24 9 1. 2. 3. 4. 5. 6. 7. 1

[Under Sections 11 and 11B of Securities and Exchange Board of India Act, 1992 read with Regulation 11 of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003]. AGAINST SHRI. ASHOK MITTAL, ASHOK MITTAL & CO. AND CLARIDGES INVESTMENTS & FINANCE PVT. LTD. IN THE MATTER OF DEALINGS IN THE SHARES OF GLOBAL TRUST BANK. 1.0 Background 1.1 The shares of Global Trust Bank (hereinafter referred to as GTB) were listed on Bombay Stock Exchange Ltd. (hereinafter referred to as BSE) and National Stock Exchange of India Ltd. (hereinafter referred to as NSE). The price of the shares of GTB had witnessed a significant rise accompanied with rise in volumes in the said stock exchanges during the financial year 2000-2001. 1.2 It was noticed that the price of the said shares had gone up from a low of Rs.57.00/- on October 11, 2000 to Rs.114.70/- on November 20, 2000 on BSE i.e., an increase of more than 100% in just 29 trading sessions. During the same period the price of the said shares on NSE had gone up from a low of Rs.57.05/- to a high of Rs.114/-. During the period from September 01, 2000 to October 10, 2000, the average daily volumes in the shares of GTB on BSE were below 38,000 shares while the same had increased to more than 7,70,000 shares during the period October 25, 2000 to November 23, 2000. The average daily volumes on NSE during the same periods were 4,20,000 shares and 12,96,000 shares respe

Securities Markets) Regulations, 1995 (hereinafter referred to as the FUTP Regulations). 1.4 Vide an interim order dated December 31, 2002, SEBI also directed 50 entities including Shri. Ashok Mittal, Ashok Mittal & Co and Claridges Investments & Finance Pvt. Ltd., (hereinafter referred to as the said entities) not to buy, sell or transfer, pledge or dispose off or deal in any other manner in the shares of GTB, either directly or indirectly till the completion of investigations. After affording a post decisional hearing, the above directions were revoked in respect of 14 entities including the said entities by SEBI, vide order dated June 12, 2004. As the order dated December 31, 2002 was an ex-parte ad-interim order and the order dated June 12, 2004 was only confirmatory in nature, it was explicitly mentioned in the said order dated June 12, 2004 that "the revocation of the ex-parte ad interim order shall not in any way be construed as exonerating the said entities". 2.0 Show Cause Notice and the Reply 2.1 Pursuant to the investigations, a notice dated June 16, 2004 was issued by SEBI to the said entities under sections 11 and 11 B of the Act read with Regulation 11 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as the 2003 Regulations) asking them to show cause as to why suitable directions should not be issued against them for the alleged violation of Regulation 4 (b) of the FUTP Regul

Source: SecMarx — sebi:WTM/GA/114/ISD/12/06. 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.