sebi:WTM/PS/55/IVD/ID-3/NOV/2010
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Facts / Headnote
Restrained G-Tech Info Training Limited and Mr. Munir Gazi from buying, selling and dealing or accessing the securities market directly or indirectly for a period of six months from the date of the order.
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 11
- Reg. 3(c)
- Reg. 53A
Parties
- G-Tech Info Training Limited
- Mr. Munir Gazi
Holding
G-Tech Info Training Limited and its Chairman and Managing Director Mr. Munir Gazi were found to have aided and abetted manipulation in the scrip of G-Tech by artificially reducing the floating stock of shares, in violation of Regulations 3(c), 4(1) and 4(2)(e) of the PFUTP Regulations, and were restrained from dealing in securities for six months.
Full text
Page 2 of 9 through its director Mr. Shirish Shah, Ms. Sandhya Shirish Shah, Ms. Pravina Chandrakant Shah, Mr. Rajesh Panchal, Mr. Prasad Tandel, Mr. Prashant Narvekar, Mr. Ashok Sonu Bhagat and Mr. Prakash D’Souza (hereinafter all collectively referred to as ‘Shah group’), appeared to be as major buyers, pushing up the prices of the scrip by placing bulk buy orders for large quantities. The said Shah group was found buying shares of G-Tech from market and rematerializing it. G-Tech was also found adopting various measures in order to reduce the floating stock of the company which in turn helped Shah group to manipulate the price of the scrip. Investigation inter alia revealed that G-Tech and Mr. Munir Gazi, Chairman and Managing Director, G-Tech (hereinafter both collectively referred to as ‘noticees’) had facilitated manipulation in the scrip of G-Tech thereby violated the provisions of Regulation 3(c), 4(1) and 4(2) (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as PFUTP Regulations).
Page 3 of 9 accessing the capital market and prohibiting from buying, selling or dealing in securities in any manner or whatsoever for a particular period should not be issued against them.
Page 4 of 9 - The letter dated December 03, 2003 and December 05, 2003 i.e rejecting the request for dematerialization of shares were not in his knowledge as he had ceased to be the director of the company. - Had not executed a single transaction in the scrip during the period of investigation. - Not aware of any Shah group. Further, no such allegation has been made in the SCN. - Mr. Prakash D’souza director of the company was responsible for dematerialization and rematerialization of shares.
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Source: SecMarx — sebi:WTM/PS/55/IVD/ID-3/NOV/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.