sebi:WTM/KMA/ERO/IVD/59/04/2009
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Facts / Headnote
Restrained G.R. Industries and Finance Limited from accessing the securities market and prohibited it from buying, selling or otherwise dealing or associating with the securities market in any manner and in any capacity for a period of six months.
Provisions invoked
- s. 11B
- s. 19
Regulations
- Reg. 11
- Reg. 4(2)
- Reg. 4(2)(a)
Parties
- G.R. Industries and Finance Limited
Holding
G.R. Industries and Finance Limited violated Regulation 4(2)(a) and 4(2)(e) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 by facilitating manipulation in its own shares. The company was restrained from accessing the securities market for a period of six months.
Full text
Page 2 of 8 traded for more than 83% of the total volume of the shares of the company at CSE during the period of investigation. The said trades prima facie created misleading appearance of trading in the securities market and further manipulated the price of the shares of the company. It was prima facie found that the said stock brokers executed cross deals in the shares of the company during such period. The investigation conducted by SEBI inter alia revealed that Bubna Stock Broking Services Limited was one of the major shareholders of the company and was holding 16.20% of the total equity shareholding as on March 31, 2005. Some of the clients of the aforesaid stock broker (Bubna Stock Broking Services Limited) which had traded in the shares of the company were found to be connected with the company by way of common address. In the
Page 3 of 8 charges leveled against them, vide show cause notice dated June 30, 2008. However, the company failed to file any reply to the aforesaid show cause notice. In the facts and circumstances, I do not consider it necessary to provide another opportunity to the company to make its submissions. In the interests of justice, I therefore shall deal with the charges leveled against the company on the basis of the material available on record. The only issue for consideration is whether the company had any role in the manipulation in its shares and thus violated Regulation 4(2)(a) and 4(2)(e) of the said Regulations.
Page 4 of 8 33, C.R.Avenue, 9th Flr, Room No.916, Kolkata–12. Similarly, the stock broker, Ashok Kumar Kayan traded inter alia for Truly consultancy Private Limited, Stem Travels Private Limited in the shares of the company during the period of investigation. The said clients also shared the same address as that of the company. The details of which are given below:
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Source: SecMarx — sebi:WTM/KMA/ERO/IVD/59/04/2009. 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.