sebi:WTM/PS/20/IVD/ID-02/JULY/2010
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Facts / Headnote
Restrained Malvica Engineering Ltd and its Managing Director Shri P Y Jhala from buying, selling or dealing in securities market whatsoever or accessing the securities market, directly or indirectly, for a period of two years from the date of the order with immediate effect
Provisions invoked
- s. 11
Regulations
- Reg. 11
- Reg. 13
- Reg. 3(b)
Parties
- Malvica Engineering Ltd
- Shri P Y Jhala
Holding
Malvica Engineering Ltd and its Managing Director Shri P Y Jhala were found to have published false and misleading June 2003 quarter results and were restrained from buying, selling, dealing in or accessing the securities market for two years.
Full text
Page 2 of 7 Exchange (hereinafter referred to as ‘ASE’) and Vadodara Stock Exchange (hereinafter referred to as ‘VSE’). 2. The details of trading in the scrip during the relevant period of time were analyzed. The financial performance of the company was also examined. It was found that MEL had recorded net sales of Rs.110 lacs and incurred a loss of Rs.10 lacs for the financial year ended March 2002. For the following year, that is, the financial year ended March 2003 it showed net sales of Rs. 170.70 lacs and loss of Rs.2.80 lacs. During the year 2003-2004, the company showed sales of Rs.162 lacs and loss of Rs.103.7 lacs. Investigations further revealed that during the period June 27, 2003 to August 27, 2003, the scrip opened with a price of Rs. 3.90 on June 27, 2003 and closed at Rs. 15.62 on August 27, 2003 (hereinafter referred to as ‘rise period’). This rise was followed by a fall in price to Rs. 5.10 till September 24, 2003 and thereafter further to Rs.2.70 on November 06, 2003 (hereinafter referred to as ‘fall period’). During the rise period, the scrip was traded on 43 days for a total volume of 57,21,123 shares. During the fall period, the scrip was traded on 51 days for total volume of 15,20,486 shares.
Page 3 of 7 Act read with Regulation 11 of PFUTP Regulations including restraining them from accessing the capital market and prohibiting from buying, selling or dealing in securities in any manner should not be issued against them.
Page 4 of 7 provisional results for the full year ended March 2004 showed net sales of Rs. 1.62 crore only and loss of Rs. 103.71 lacs.
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Source: SecMarx — sebi:WTM/PS/20/IVD/ID-02/JULY/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.