sebi:WTM/TCN/ERO/09/June/08
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Facts / Headnote
Suspension of trading in the shares of M/s. Subh Laxmi Projects Limited (now M/s. Concrete Credit Limited) revoked; company eligible for trading subject to complying with all other applicable laws.
Provisions invoked
- s. 19
Regulations
- Reg. 7
Parties
- M/s. Subh Laxmi Projects Limited (now M/s. Concrete Credit Limited)
Holding
The Whole Time Member revoked the ex-parte interim order dated 29-09-2005 suspending trading in the shares of M/s. Subh Laxmi Projects Limited (now Concrete Credit Limited), holding that the company is eligible for trading at the exchange subject to complying with all other applicable laws.
Full text
Page 2 of 5 and intended to create a false market by various entities who had dealt with in the scrip. Prima facie, it was found that the brokers who had dealt in the scrip had followed a common modus operandi of artificially jacking up the price and creating false volumes through continuous self deals executed on the same terminal and cross deals amongst themselves, thereby not only enriching themselves but also aiding and abetting the process of legitimizing the gains. Since, such unfair and fraudulent trading practices posed a threat to the investors at large, which also prima facie established a case of violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 and Regulation 7 of SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 read with code of conduct as specified in Scheduled II of the said Regulations, the Board had initiated formal investigations in the matter. In the meanwhile, to safeguard the integrity of the securities market and to protect the interests of the investors, the Board vide an ex- parte ad-interim order dated 29-09-2005 had directed eleven stock brokers of CSE shall not buy, sell or deal in securities, in any manner, either directly or indirectly, till further directions and also directed that trading in the shares of SLPL and 5 other companies would be suspended till further orders. In view of the above said interim
Page 3 of 5 Personal hearing was granted to the company on 09-12-2005. During the course of hearing, the entity stated that it has filed all the relevant financial statements with the CSE. The entity was asked to produce proof of filings of the financial statements with the exchange to SEBI by December 16, 2005. The documents submitted by the entity regarding filing of un-audited quarterly results for the years 2002-03 (all quarters), 2003-04 (all quarters), 2004-05 (All quarters) and 2005-06 (1st & 2nd quarter) were forwarded to CSE for their comments. The exchange has vide their letter dated December 19, 2005 stated that they could not locate the submission of the said documents made by the entity with them. Thus, the CSE did not indicate the possibility of submission of the said documents by the company with them.
Page 4 of 5 6. During the investigations CSE has submitted a report to SEBI vide letter dated October 31, 2006 wherein they had confirmed that SLPL has not complied with Clause – 35(share holding pattern) and with regard to Unaudited Quarterly results they had stated that they could locate the quarterly results of 1st quarter of 2002-03, 3rd and 4th quarters of 2003-04, 1st and 2nd quarters of 2004-05 and 1st quarter of 2005-06. However during the course of investigation SLPL vide their letter dated December 11, 2006 has confirmed that they have submitted all the information to CSE as required under listing agreement and has also furnished all the documentary evidences in this regard. As regards book closing and corporate governance, CSE has informed that the company has violated the listing requirements. However the company has denied the same and furnished the documentary evidences in support of the same. Regarding the compliance status of listing agreement of the company, CSE vide its letter dated December 19, 2006 has informed that since the Exchange does not keep any track in respect of compliance of Listing Agreement of a suspended company, it is unable to furnish any compliance status in respect of SLPL.
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Source: SecMarx — sebi:WTM/TCN/ERO/09/June/08. 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.