sebi:WTM/PS/56/IVD/ID-3/MARCH/2010

SEBI · SEBI · 1999-12-02 · Prashant Saran, Whole Time Member

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Directions issued against Sanjay Sinha, EFSL, ECL, CEFT and N.K. Jain restraining them from dealing in securities for one year; SCNs against EIL, Smt. Rama Sinha, Wg. Cdr. Manmohan Dhasmana and B.L. Khurana disposed of without directions.

Provisions invoked

Regulations relied on

Parties

Holding

Sanjay Sinha, EFSL, ECL, CEFT and N.K. Jain (proprietor of Parshad & Co. and Saran Investments Ltd.) violated Regulation 4(a), (b) and (e) of the PFUTP Regulations by funding market intermediaries to manipulate the price of EIL scrip, and are restrained from dealing in securities for one year. The charges against EIL and its directors Smt. Rama Sinha, Wg. Cdr. Manmohan Dhasmana and B.L. Khurana were set aside for lack of evidence.

Full text

Page 2 of 19 Rs.43.15/- as on December 02, 1999 to Rs.100.70 as on February 02, 2000. Due to sharp rise in the price and low trading volumes, BSE reduced the circuit filter limit on the scrip from 8% to 4% on December 08, 1999. Apart from the reduction of circuit filter, BSE also imposed price sensitive steps such as additional volatility margin from time to time to curb the volatility in the prices of EIL.

Page 3 of 19 (hereinafter referred to as ‘NSL’) while trading in the scrip of EIL constituted a major part of volumes at NSE during the relevant period.

Page 4 of 19 a. EIL vide its letters dated September 9, 2003, January 19, 2004, February 22, 2008, March 10, 2008, October 06, 2008, October 07, 2008, October 16, 2008, June 22, 2009 and October 15, 2009 submitted as under:

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Source: SecMarx — sebi:WTM/PS/56/IVD/ID-3/MARCH/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.