sebi:WTM/GA/ISD/24/07
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Facts / Headnote
Ad interim ex-parte directions restraining the six named entities from buying, selling or dealing in shares of KSL & Industries Ltd and Jaybharat Textile & Real Estate Ltd, and directing depositories not to give effect to any transfer of such shares; detailed investigation ordered.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 11(1)
Regulations
- Reg. 3
- Reg. 4(2)
- Reg. 4(2)(b)
Parties
- EDC Securities Ltd.
- Jayshree Petrochemicals Pvt Ltd
- Nitish Nayak
- Avery Procon Pvt Ltd
- Axon Realpro Private Limited
- MDGNA Developers Pvt Ltd
Holding
The Whole-Time Member held that six entities connected to the promoters of KSL & Industries Ltd and Jaybharat Textile & Real Estate Ltd prima facie indulged in synchronized trades and placed buy orders at higher prices, artificially inflating price and volume in violation of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, and issued ad interim ex-parte directions restraining them from dealing in the shares of both companies pending investigation.
Full text
Page 2 of 17 • Krishna Lifestyle Technologies Ltd • Krishna Knitwear Technology Ltd (KKT) – not listed • Rajasthan Bank Financial Services Ltd – not listed JTREL is not shown as a group company; however, it is pertinent to mention that the JTREL and KSLIL both have been promoted by Shri Saurabh Kumar Tayal and share 5 other common promoters. This prima facie suggests that JTREL also belongs to the Tayal family. 1.3 It is observed that some entities apparently connected to the promoters of KSLIL and JTREL have been continuously dealing in the shares of KSLIL and JTREL in a manner prima facie inconsistent with the interest of the investors and SEBI Regulations. Such entities have been identified as below: Table 1: Entities connected to the group companies of Tayal Family Entity Link with promoter ( Tayal Family) EDC Securities Ltd ¾ Appearing in the promoter category of KSLIL as on quarter ending March 2005. KSLIL is a group company of Krishna group promoted by Tayal family. ¾ Similar address as that of KSLIL Nitish Nayak ¾ Shares same telephone number as that of EDC Securities Ltd, which is connected to one of the group companies of Tayal group. ¾ As per KYC form filed with the broker, EDC securities Ltd is shown as the introducer. ¾ He has shown KKT as his employer which appears to be the short name of a the group company of Tayal family viz Krishna Knitwear Technology Ltd (KKT) ¾ Resides at Silvassa, where the registered office of KKT and KSLIL are also located. Jayshree Pet
Page 3 of 17 1.5 KSL & Industries Ltd, is registered in 1975 as a partnership firm; Krishna Hosiery Mills & was converted into a private limited company in 1983 and subsequently into a public limited company on 1 April 1992. The name was changed to Krishna Texport & Capital Markets in September 1994. The company is now known as KSL & Industries Ltd. It manufactures and exports specialty knitted fabrics. It had commenced operations as a small-scale knitting unit in Dombivli in 1975, and diversified into dyeing and processing of knitted fabrics in 1979. Shareholding pattern of JTREL and KSLIL 1.6 The shareholding pattern of JTREL and KSLIL is as follows; Table 2 : Shareholding pattern of JTREL and KSLIL
Page 4 of 17 2 PRELIMINARY PRIMA FACIE FINDINGS 2.1 Dealing in Shares of Jaybharat Textile & Real Estate Ltd (JTREL) Price and volume movement JTREL 2.1.1 The movement in the price and volume of the company for the period Jan 2007 to August 2007 is given below: Table 3 : Price and volume data - JTREL Date Open (Rs.) High (Rs.) Low (Rs.) Close (Rs.) No. of Shares No. of Trades Net T/O (Rs.) Feb-07 90.1 110 87.45 109.65 61541 617 6,073,803.00 Mar-07 110 138.65 106 138.45 89404 785 11,142,789.00 Apr-07 139 174.6 136.5 174 162408 1317 25,221,112.00 May-07 174.6 192.5 173.4 191.2 255624 2406 48,243,607.00 Jun-07 190 195.45 187 191.3 665133 2714 127,282,393.00 Jul-07 193 365 190.05 365 1367575 3088 272,104,003.00 Aug-07 383.25 416.3 351.1 405.45 860618 2836 338,246,021.00
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Source: SecMarx — sebi:WTM/GA/ISD/24/07. 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.