sebi:WTM/GA/70/ISD/05/06
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Facts / Headnote
Ad-interim ex-parte order dated November 30, 2005 continued with further interim directions pending investigation; lenient view taken having regard to trading suspension in five scrips already undergone since November 30, 2005
Provisions invoked
- s. 11
- s. 19
- s. 11(1)
- s. 16
- s. 795
Regulations
- Reg. 7
Holding
The prima facie findings of false market creation through matched/cross deals were not rebutted, so interim restraints on brokers and suspension of trading in the five CSE small-cap scrips were continued pending investigation, with a lenient view for companies given suspension already suffered.
Full text
Page 2 of 50 Shri B.S.Sinha Roy, Barrister-at-Law Shri S.K.Poddar, Advocate 13. M/s.Goenka Business & Finance Ltd:Shri B.S.Sinha Roy, Barrister-at-Law Shri S.K.Poddar, Advocate 14. M/s.Coronet Industries Ltd.: Shri B.S.Sinha Roy, Barrister-at-Law Shri S.K.Poddar, Advocate 15. M/s.Adinath Bio-labs Ltd.: Shri Anil Murarka, authorized person Shri R.K.Lakhotia, Practicing C.S. 16. M/s.Nageshwar Investment Ltd.: Shri Aditya Bhansali, Advocate Shri Vinay Chauhan, Advocate Shri Vikas Mishra, company representative Shri D.Sanyal, company representative FOR SEBI
Page 3 of 50 the promoters of these companies and brokers who had manipulated the prices on the shares of these companies, in order to protect the interest of investors and the integrity of the market. Shares of the following companies witnessed a sharp price variation ranging from 69% to 323% within a short period between April 2005 and November 2005.
Page 4 of 50 2.2 It was observed from the latest annual report of the company received from CSE that in the year 2004-05 the share capital of the company was Rs.30.70 crore against which the company grossed receipts of Rs.40.87 crore which almost matched its expenditure (Rs.40.87 crore) and consequently its net profit (PAT) for the year was only a paltry Rs.3,437. During the previous year also the company’s net profit (PAT) was only Rs.2,497. It was observed that the company had an accumulated loss of Rs.7.27 lakh at the end of financial year 2004-05.
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Source: SecMarx — sebi:WTM/GA/70/ISD/05/06. 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.