sebi:WTM/KMA/NRO/IVD/225/02/2010
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Facts / Headnote
Noticees restrained from accessing the securities market and from buying, selling or dealing in securities for a period of two years; proceedings against JVG Finance Limited, Mr. Jagdish Narain and Mr. Pramod Kapur disposed of without directions.
Provisions invoked
- s. 19
Regulations
- Reg. 11
- Reg. 4
- Reg. 4(a)
Holding
The company and its directors were held guilty of contravening SEBI's Disclosure and Investor Protection Guidelines for failing to inscribe 'non-transferable' on locked-in promoter shares, and HFL and its associate entities were held guilty of violating Regulation 4(a) & 4(b) of the PFUTP Regulations, 1995 for creating a false market and artificially inflating the share price; all such noticees were restrained from the securities market for two years.
Full text
Page 2 of 19 the company rose from a low of Rs.36.00/- on June 21, 1995 to a high of Rs.81.00/- on October 17, 1995 with large volumes being traded at The Delhi Stock Exchange Limited (hereinafter referred to as DSE). Further, the share price again rose from Rs.78/- on June 3, 1996 to a high of Rs.150/- on September 25, 1996 at DSE. The investigation had noted a similar pattern of price rise at the erstwhile Magadh Stock Exchange Limited (hereinafter referred to as MgSE). The investigation by SEBI revealed that Hoffland Finance Limited (hereinafter referred to as HFL) and its associate entities had bought the shares of the company in large scale during the aforesaid investigation periods. It was observed that a group of entities/persons including Mr. B. B. Sharma, Marisia Financial Services Limited, Mr. Rakesh Mishra, Mr. Hari Kumar, M/s. V. M. Investment, Mr. S. K. Gupta, Mr. Rana Das, M/s. Ever Grow Financial Services Private Limited and Mr. Gopal Gupta alleged to have linkages with HFL and its directors had made substantial purchases of the shares of the company during the investigation periods. The said purchases had constituted a significant part in the trading in the shares of the company at DSE and MgSE and were responsible for the artificial price rise during both the periods of investigation. It was also alleged that the aforesaid persons/entities had created misleading appearance of trading in the shares of the company. The findings of the investigation also reveale
Page 3 of 19 Financial Services Limited, Mr. Rakesh Mishra, Mr. Hari Kumar, M/s. V. M. Investments, Mr. Rana Das, Mr. S. K. Gupta, Evergrow Financial Services Private Limited and Mr. Gopal Gupta shall henceforth be referred to as ‘HFL group’ or ‘associate entities of HFL’ and individually by their respective names. The said show cause notices required the entities/persons to show cause as to why they should not be debarred from associating with the capital market related activities and dealing in securities for an appropriate period. Mr. V. K. Sharma, managing director of the company filed his reply, vide letter dated May 20, 2005. Thereafter, an opportunity of hearing was granted to the company, its directors and the HFL group on August 1,
Page 4 of 19 A. JVG FINANCE LIMITED AND ITS DIRECTORS, MR. V. K. SHARMA, MR. TRIPAT SINGH BHAN AND MR. BIRESH PRASAD SINGH
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Source: SecMarx — sebi:WTM/KMA/NRO/IVD/225/02/2010. 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.