sebi:WTM/PS/11/IVD/ID-3/Oct./2009
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Facts / Headnote
Vikram Patel and Prakash Patel restrained from accessing the securities market and prohibited from buying, selling or dealing in securities, directly or indirectly, for a period of five years (with credit for approximately two years and eleven months already served, requiring remaining debarment of two years and one month).
Provisions invoked
- s. 11B
- s. 19
Regulations
- Reg. 11
- Reg. 4
- Reg. 13
- Reg. 4(a)
Parties
- Vikram Patel
- Prakash Patel
Holding
Vikram Patel and Prakash Patel, as persons in charge of the affairs of SRMTL, were held to have contravened Regulation 4(a) and 4(e) of the PFUTP Regulations, 1995 read with Regulation 13 of the PFUTP Regulations, 2003, for aiding and abetting price manipulation in the scrip of SRMTL, and were debarred from the securities market for five years.
Full text
Page 2 of 15 said SEBI order was challenged before the Hon’ble SAT in Appeals Nos. 377 of 2004 (filed by SRMTL), 378 of 2004 (filed by Vikram Patel, Sharad Patel and Prakash Patel) and 380 of 2004 (filed by Rambhai Patel, Hansraj Kanji and Dr. Prakash Trivedi).
Page 3 of 15 due consideration of the material available on record the final order against SRMTL, Rambhai Patel, Dr. Prakash Trivedi and Hansraj Kanji were passed on June 06, 2008.
Page 4 of 15 aggregating Rs.163.77 crores. The paid-up capital of the company after the public issue was Rs.26.50 crores divided into 5.3 crore equity shares of Rs.5 each. Allotments were made to the associate entities of SRMTL in the aforesaid issue. The Lead Managers to the above public issue were Khandwala Securities Ltd. (hereinafter referred to as ‘KSL’), and IDBI. During the relevant time, the scrip of the company was listed at the National Stock Exchange (hereinafter referred to as ‘NSE’), Bombay Stock Exchange (hereinafter referred to as ‘BSE’) and the Ahmedabad Stock Exchange (hereinafter referred to as ‘ASE’). At NSE, the newly issued shares were listed in the month of March, 2000, with the opening price close to the issue price of Rs.120. After listing, price of the scrip came down to around Rs.50 by May, 2000. The scrip, which was quoting around Rs.55/- on June 01, 2000 with traded volume of 41,700 shares, gradually moved up to Rs.88.90 as on September 08, 2000 with a volume of 1,51,000 shares. The highest volume recorded was 2,69,600 shares on June 20, 2000 with the closing price of Rs.69.40. The net traded value from settlement no. 36 to 37 between August 30, 2000 and September 06, 2000 increased by 142% and the number of shares traded by 116%. Later, the scrip came down to the level of Rs.52 with a volume of 16,000 shares as on October 13, 2000. The price movement of the scrip at BSE and ASE was also in tandem with that at NSE.
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Source: SecMarx — sebi:WTM/PS/11/IVD/ID-3/Oct./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.