sebi:WTM/VKC/1D-7/17/06

SEBI · SEBI · 2001-01-19 · V.K. Chopra, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Noticee restrained from buying, selling and dealing or accessing the securities market in any manner for a period of six months from the date of the order, with immediate effect.

Provisions invoked

• s. 11
• s. 11(4)
• s. 11B

Regulations

• Reg. 11
• Reg. 4(b)

Parties

• Ms Aditi Dalal

Holding

The Noticee, Ms Aditi Dalal, violated Regulation 4(b), 4(c) and 4(d) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 1995 and was restrained from buying, selling, dealing in or accessing the securities market for six months.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER 1.0  BACKGROUND 1.1 Securities and Exchange Board of India (hereinafter referred to in short as ‘the Board’) conducted a detailed investigation in the scrip of M/s. Roofit Industries Ltd. (hereinafter referred to in ‘Roofit’). The said investigation was initiated on the basis of a sudden spurt in volume of the shares traded on NSE during the period October 6, 1999 to December 12, 1999. Further, th received a complaint dated January 19, 2001 from one Shri Michael D’Silva alleging that the entire shareholding in Roofit is controlled directly or indirectly by the management and that shareholding is being used to manipulate the volume and price of the scrip. 1.2 The Board directed NSE and BSE to conduct further investigations at their end. NSE submitted their investigation report for the period November 8, 2000 to February 6, 2001 vide their let December 31, 2001 and for the period February 7, 2001 to May 8, 2001 vide letter dated September 11, 2002. BSE submitted their report for the period January 22, 2001 to May 4, 2001 on S 26, 2001 and for the period October 10, 1999 to December 12, 1999 vide letter dated May 24, 2002. Considering the above, the Board conducted investigation for the period October 06 December 12, 1999 and November 08, 2000 to May 08, 2001. 1.3 The investigation revealed that Ms Aditi Dalal (hereinafter referred to as the Noticee) who is related to the trading member M/s C

4.1 In the said reply dated January 05, 2004, the Noticee requested for a personal hearing. Accordingly, personal hearing had been fixed on September 19, 2006 at 02.30 pm before me. The au representative of noticee Mr Milan Dalal attended the hearing. 5.0 CONSIDERATION OF ISSUES 5.1 I have carefully considered the show cause notice, submissions of Noticee and other materials on record. 5.2 I find that Roofit was incorporated on February 18, 1982 as a Private Limited Company in the name and style of M/s. Ratnagiri Asbestos Private Ltd.  Subsequently it changed its name to M/s. R Building Products Ltd. on October 21, 1987 and later to M/s. Roofit Industries Ltd. in 1996. The shares of Roofit were permitted to be traded on the National Stock Exchange (hereinafter re as “NSE”) on August 23, 1995 and later listed on NSE on December 13, 2001. The shares are also listed on the Stock Exchange, Mumbai (hereinafter referred to as “BSE”), Delhi Stock E and Ahmedabad Stock Exchange. 5.3 The investigation reveals the involvement of 2 broking entities viz. CFL and DGP among other entities. These 2 entities have traded for their r clients. CFL a member of NSE and a stock broker registered with SEBI had entered into several matching transactions with DGP, a mem NSE and a stock broker registered with SEBI. Details of the trades are as under:

26-Mar-01 2001012 12:31:55 110.50 250 S. Ramdas 12:31:55 Ashadevi Beriwala 12:31:48 26-Mar-01 2001012 12:32:03 110.40 700 S. Ramdas 12:32:03 Ashadevi Beriwala 12:32:03 26-Mar-01 2001012 12:32:09 110.40 50 S. Ramdas 12:32:09 Ashadevi Beriwala 12:32:03 26-Mar-01 2001012 12:53:10 109.50 750 S. Ramdas 12:53:10 Ashadevi Beriwala 12:53:10 26-Mar-01 2001012 12:53:22 109.80 750 S. Ramdas 12:53:22 Ashadevi Beriwala 12:53:21 26-Mar-01 2001012 13:28:06 110.50 750 S. Ramdas 13:28:06 Ashadevi Beriwala 13:28:05 26-Mar-01 2001012 13:28:15 110.20 700 S. Ramdas 13:28:15 Ashadevi Beriwala 13:28:15 26-Mar-01 2001012 13:28:23 110.20 50 S. Ramdas 13:28:23 Ashadevi Beriwala 13:28:15 26-Mar-01 2001012 14:28:33 110.50 750 S. Ramdas 14:28:32 Ashadevi Beriwala 14:28:33 26-Mar-01 2001012 14:29:05 110.40 700 S. Ramdas 14:29:05 Ashadevi Beriwala 14:29:05 26-Mar-01 2001012 14:29:10 110.40 50 S. Ramdas 14:29:10 Ashadevi Beriwala 14:29:05 26-Mar-01 2001012 14:54:42 111.00 750 S. Ramdas 14:54:42 Ashadevi Beriwala 14:54:42 26-Mar-01 2001012 14:54:52 110.80 700 S. Ramdas 14:54:52 Ashadevi Beriwala 14:54:52 26-Mar-01 2001012 14:54:58 110.80 50 S. Ramdas 14:54:58 Ashadevi Beriwala 14:54:52 26-Mar-01 2001012 15:23:43 111.50 750 S. Ramdas 15:23:43 Ashadevi Beriwala 15:23:42 26-Mar-01 2001012 15:23:55 111.40 700 S. Ramdas 15:23:55 Ashadevi Beriwala 15:23:53 26-Mar-01 2001012 15:24:01 111.40 50 S. Ramdas 15:24:01 Ashadevi Beriwala 15:23:53 27-Mar-01 2001012 10:18:46 111.00 750 S. Ramdas 10:18:46 Ashadevi Beriwala 10

Source: SecMarx — sebi:WTM/VKC/1D-7/17/06. 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.