sebi:WTM/KMA/78/ISD/06/2009
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Facts / Headnote
Interim order restraining the connected clients from dealing in securities market; matter referred to Enforcement Directorate; formal investigations initiated; noticees given 15 days to file objections
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 2(c)
- Reg. 3(a)
- Reg. 4(2)(a)
Holding
SEBI, acting through the Whole Time Member, passed an interim order restraining the identified 'connected clients' (a group of 26 entities/persons including MSL, Maniar group entities, and preferential allottees) from dealing in the securities market, finding prima facie that they engaged in circular trading, synchronized trades, and off-market transactions to create artificial trading volume in five scrips (Cals, Confidence, Bang, SPSL, TFL).
Full text
3. SEBI found that out of the five entities mentioned above, one entity namely MSL is a company listed at Bombay Stock Exchange Limited (hereinafter referred to as BSE). The data available on BSE website regarding MSL showed that its promoters held 74.33% of its share capital as on March 31, 2009. It is seen from the details of promoters and their holdings (as available on the BSE website), that MSL has 129 entities as promoters, out of which the two entities namely MSL Construction Limited and Alpha Software Services Limited held 14% stake each. The other promoter entities held stakes of 5% or less. The list of promoters include Mr. K Varadarajan, Managing Director and Compliance Officer and Ms. K Chitra, Director who held 51,300 shares (1.03%) and 20,100 shares (0.40%) respectively.
Sr. No. Name of allottee No. of warrants Category Permanent Account No. 6. Beejay Investment & Financial Consultants Private Limited 1125000 Non-Promoter Group AABCB0832B
directors, as narrated in the said Annexure, it appears that Mr. Harsh Shirish Maniar, Mr. Jay Shirish Maniar, HSM, CFSPL, JIPL, KLFPL and SFSPL (collectively referred to as Maniar Group) are related to each other. From the copies of the Permanent Account Number card of Mr. Harsh Shirish Maniar and Mr. Jay Shirish Maniar, it is seen that their father’s name is Mr. Shirish Shantilal Maniar. It is noted that one Shirish Maniar had been chargesheeted by Central Bureau of Investigation (CBI) along with Mr.Ketan Parekh and others, in the matter of Madhavpura Mercantile Co-operative Bank (hereinafter referred to as MMCB). Mr. Jay Shirish Maniar and Mr. Harsh Shirish Maniar, who are the directors of HSM, JIPL, CFSPL, KLFPL and SFSPL, are apparently the sons of Mr. Shirish Maniar. It is understood that the said CBI case (no.132/2004) is pending trial before the Additional Chief Judicial Magistrate for CBI Cases, Ahmedabad.
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Source: SecMarx — sebi:WTM/KMA/78/ISD/06/2009. 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.