sebi:WTM/RKA/103/ISD/2014
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
The named entities are restrained from accessing the securities market and prohibited from buying, selling or dealing in securities, either directly or indirectly, till further directions, without prejudice to any other action by SEBI.
Provisions invoked
- s. 11B
- s. 11
- s. 19
- s. 11(1)
- s. 12A
- s. 21
- s. 67(3)
Regulations
- Reg. 13
- Reg. 3
- Reg. 200
- Reg. 3(a)
- Reg. 3(b)
- Reg. 2(1)
- Reg. 4(2)
- Reg. 78(2)
Holding
On prima facie findings of price/volume manipulation through matched trades among connected entities and of a disguised public issue presented as a preferential allotment, the entities are restrained from accessing and dealing in the securities market till further directions.
Full text
Page 2 of 55 3. Kelvin had a share capital of 9,96,000 shares of `10/- each as on December 31, 2011.From the Annual Reports of Kelvin for FY 2011-12 and FY 2012-2013, it was observed that it is in the business of financing and investing and it had earned a negligible profit of `25,869/- during 2011-12 which marginally increased to `43,957.13/-, at the end of the FY 2012-13, with negative reserves. Kelvin's financial statements for the quarters ending June 2013, September 2013, December 2013 and March 2014 also indicated negligible profits earned by it during the relevant period. It was further noted that during the Examination Period there was no corporate announcement made by Kelvin which could support such price rise in its scrip. Thus, the sharp rise in the price of the scrip of Kelvin during the Examination Period was not supported by its fundamentals or any other genuine factor. It is interesting to note that the shares of Kelvin were suspended on BSE till November 2011 and till March 29, 2012, there were no trades on BSE except a single trade of 50 shares at a price of `8.55/-. Strangely, inspite of such poor fundamentals, Kelvin was able to raise `13,00,00,000/- by issuing 1,30,00,000 shares in physical form to certain entities ( individuals and a few corporate entities) at `10/- per share on March 20, 2012. To invest in a company having such poor and meagre fundamentals at a price which is at a premium to the prevailing market price cannot prima-facie be termed as rat
Page 3 of 55 were instrumental in the rise in price /buy volume of Kelvin. A set of 22 (twenty two) such entities (hereinafter referred to as the "Shortlisted Group") of Kelvin Fincap Group was shortlisted on the basis of following parameters, viz.
Page 4 of 55 Patel, director of RFL International Limited and Fast Track Entertainment Limited. 7. BBPPE7839K Sushma Vimalkumar Raval 1. The entity is one of the directors of Kelvin as per MCA website.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/RKA/103/ISD/2014. 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.