SECURITIES AND EXCHANGE BOARD OF INDIA
ORDER
UNDER SECTIONS 11B AND 11(4) OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 IN THE MATTER OF
1. NAGESHWAR INVESTMENT LTD., 2. ADINATH BIO-LABS LTD.,
3. GLOBE STOCKS & SECURITIES LTD., 4. GOENKA BUSINESS & FINANCE LTD. AND 5. CORONET INDUSTRIES LTD.
WTM/GA/29/ISD/11/05
1. Background
1.1 In recent times, SEBI and the Stock Exchanges have been closely monitoring the shares of companies with low market capitalization, commonly referred to as “small cap stocks” or “penny stocks”. SEBI has taken also taken several regulatory action SEBI had also taken action, including initiation of investigation against several such companies, their promoters, brokers and initiated investigation against few of such companies and unscrupulous traders. SEBI had vide order dated September 29, 2005 .. also taken action against some of the “small cap stocks” viz. Prime Capital Market Ltd., Subh Laxmi Projects Ltd., Global Capital Market Ltd., Bankam Investments Ltd., S.T. Services Ltd. And Amluckie Investment Co.….., which are listed and traded on the Calcutta Stock Exchange (CSE) as well as against the promoters of these companies and 11 brokers who had manipulated the prices on the shares of these companies, in order to protect the ionterstinterest of investors and the integrity of the market. In continuation of SEBI’s continuous efforts to safeguarding the interest of investors, and protect the market from dubious participants, people, SEBI hasd recently conducted preliminary examination in the share prices of a five similar companies listed and traded on the CSE, following five companies, as the whose shares of these companies witnessed a sharp price variation ranging from 69% to 323% within within a short period between April 2005 to November 2005. on the Calcutta Stock Exchange (CSE): These companies are:
1. Nageshwar Investment Ltd.
2. Adinath Bio-labs Ltd.
3. Globe Stocks & Securities Ltd.
4. Goenka Business & Finance Ltd.
5. Coronet Industries Ltd.
1.2 The price movement of the shares of the above five companies during April, 2005 to November, 2005 is given in Table 1 below:
Table 1: The price movement of the shares of the above five companies (April-Nov)
|
Sr. No
|
Scrip Name
|
Period
|
Initial traded price
(in Rs.)
|
Last traded
price
(in Rs.)
|
% increase/decrease
|
Duration
|
|
1
|
Nageshwar Investment Ltd.
|
25/4/05 to
24/11/05
|
12.70
|
45.50
|
258%
|
7 months
|
|
2
|
Adinath Bio-labs Ltd.
|
16/5/05 to
24/11/05
|
20.80
|
88
|
323%
|
6 months 9 days
|
|
3
|
Globe Stocks & Securities Ltd.
|
15/7/07 to 24/11/05
|
19.10
|
77.65
|
307%
|
4 months 10 days
|
|
4
|
Goenka Business & Finance Ltd.
|
8/4/05 to
24/11/05
|
60.10
|
13.60
|
77%
|
7 months 17 days
|
|
5
|
Coronet Industries Ltd.
|
4/4/05 to
24/11/05
|
160.00
|
270
|
69%
|
7 months 21 days
|
The ma majjor findings of the preliminary examination are given below:
2. Preliminary Findings
Nageshwar Investment Ltd.
2.1 2.1 Nageshwar Investment Ltd. is one of the listed companies at CSE which witnessed a significant price increase during the period under scrutiny. The share price of the company increased from Rs. 12.70 to Rs. 45.50, i.e. a rise of 258% increase in 7 months.
2.2 It is observed from the latest annual report of the company received from CSE that in the year 2004-05 the share capital of the company was Rs.30.70 crore against which the company made an grossed receipts income of Rs.40.87 crore which almost exactly totally accounted for meeting its expenditure (Rs.40.87 crore) and consequently its net profit (PAT) for the year was only Rs.3,437. During the previous year also the company’s net profit (PAT) was only Rs.2,497. It is observed that the company has an accumulated loss of Rs.7.27 lakhcs at the end of financial year 2004-05.
2.3 As per the latest compliance report obtained from CSE, the company has not submitted the following documents / reports with the exchange:
a) Balance sheet for the years 2003-04.
b) Share-holding pattern for the years 2002-03, 2003-04, 2004-05 and 2005-06.
c) Unaudited quarterly results in respect of the 2nd quarter for the year 2005-06.
2.4 The exchange CSE has suspended trading in the shares of the company with effect from.e.f. November 22, 2005 for partial / non-compliance of listing agreement of the exchange.
2.5 The financial results coupled with the fact that the company has not bothered to file its balance sheet for the year ended March 2004 and its shareholding pattern since 2002-03 only confirms the belief that the company has scant interest in disclosing its financial results to the investors. In the The poor financial result of the company in 2004-05 absence of any details about the shareholding pattern of the company in the past three yearsand the fact that it is carrying an accumulated loss, do not appear to warrant a , thesudden astronomical rise in the price of 335% in the price during April 25, 2005 to November August 24, 2005. can only be inflated.
2.6 An analysis of the trading data revealed that primarily four brokers have traded in the scrip, the details of which are given in the Table below:
Table 2: Trading data of four brokers accounting for 55% of trading volume
|
Sl.
No.
|
Member
Name
|
Total
Volume
|
% to
Scrip Total
|
|
1
|
Basant Periwal & Co.- D618
|
3161955
|
19.62
|
|
2
|
Binoy Poddar - D1019
|
2029155
|
12.59
|
|
3
|
Shyam Lal Sultania - D470
|
2019402
|
12.53
|
|
4
|
P K Agarwal & Co.- D923
|
1980451
|
12.29
|
2.7 A further analysis of the trading data revealed that the above members not only acted as counter party of their own transactions, they also have matching transactions among themselves. The extent of such transactions is given in the following table.
Table 3: Trading data of two brokers – matched transactions
|
Sl
No
|
Name of the member
|
Basant Periwal
|
%
|
Binoy Poddar
|
%
|
S L Sultania
|
%
|
P K Agarwal
|
%
|
|
1
|
Basant Periwal
& Co.- D618
|
222798
|
7.05
|
2
|
0.00
|
187951
|
5.94
|
1708050
|
54.02
|
|
2
|
Binoy Poddar
- D1019
|
2
|
0.00
|
1248896
|
61.55
|
3
|
0.00
|
0
|
0.00
|
|
3
|
Shyam Lal
Sultania – D470
|
187951
|
9.31
|
3
|
0.00
|
389192
|
19.27
|
0
|
0.00
|
|
4
|
P K Agarwal
& Co.- D923
|
1708050
|
86.25
|
0
|
0.00
|
0
|
0.00
|
179600
|
9.07
|
(The percentage mentioned in the table is with respect to their total trades in the scrip during the relevant period (significant percentages shown in bold))
2.87 It ClerarlyClearly is seen that tthe cross deals executed by Binoy Poddar and the transactions between Basant Periwal and P.K. Agarwal constituted a large portion of trading in the share and have been responsible for . Hence, the price rise in the share. can be attributed to the dealings by these brokers. Such a rise in share price the company with poor fundamentals is clearly out of sync with the fundamentals fictitious and primarily designed This further fortifies the conclusion that the price movement and the transactions in the share was artificial and was designed to create a false market, when the shares lack the fundamentals and to lure small investors to invest in the shares of the company.
ADINATH BIO-LABS LTD.
2.93 8 Adinath Bio-labs Ltd. is one another of the of the “small cap” listed companies at CSE which witnessed a significant price increase during the period under scrutiny. The share price of the company increased from Rs. 20.80 to Rs. 88, i.e. a rise of 323% in 6 months & 9 days.
2.109 It is observed from the latest annual report of the company received from CSE that in the year 2004-05 the share capital of the company was Rs.5.52 crore against which the company made grossed receipts an income of Rs.20.01 crore which almost exactly largely accounted for meeting its expenditure (Rs.19.69 crore), leaving a and consequently its net profit (PAT) for the year of was only Rs.5 lacslakh. During the previous year also the company’s net profit (PAT) was Rs.8 lacslakh.
2.110 As per the latest compliance report obtained from CSE, the company has not submitted the following documents / reports with the exchange:
a) Share-holding pattern in respect of 1st and 4th quarter for the year 2002-03, 1st and 2nd quarter for the year 2003-04 and 2nd quarter for the year 2004-05.
b) Unaudited quarterly results in respect of 2nd quarter for the year 2005-06.
2.121 Thus, the available information indicates that the financial performance of the company has been consistentlyis not so impressive mediocre and certainly not enough to generate a sudden burst of investor expectation to warrant a sharp rise in share price of 323% in six months. The fact that t far from encouraging. The company has not bothered to file the shareholding pattern since 2002-03 also reflects on the attitude of the company and its scant respect towards disclosures. .
In the absence of any details about any positive move by the company and the rise in the price of 323% in six months can only be inflated and intended to create a false market.
2.42.132 An analysis of the trading data revealed that primarily four brokers have traded in the scrip, the details of which are given below:
Table 4: Trading data of four brokers accounting for 85% of trading volume
|
Sl.
No.
|
Member
Name
|
Total Volume
|
% to
Scrip Total
|
|
1
|
Pramod K Kothari -D475
|
164250
|
37.43
|
|
2
|
Purshottam Lal Kejdiwal - D739
|
82700
|
18.85
|
|
3
|
Santosh K Kejriwal Sec- D144
|
79500
|
18.12
|
|
4
|
Dinesh Kumar Lodha - D728
|
51950
|
11.84
|
2.143
It is observed from the above table that during April 2005 to May 2005 the price of the scrip fell from Rs.80 to Rs.20.75 and two brokers, i.e. Pramod K Kothari and Santosh K Kejriwal executed majority of the trades in the scrip during the said period.
It is further observed from the above table that after May-June 2005 to October 2005 the price of the scrip again rose from Rs.21 to Rs.84.20 and this time the majority of trades were executed by two different brokers, i.e. Purshottam Lal Kejddiwal and Dinesh Kumar Lodha.
2.154 A further analysis of the trading data revealed that the pattern of trading and the modus operandi seems to be identical as in the previous case wherein the above members not only acted as counter party of their own transactions, they also have matcheding the transactions among themselves, creating artificial volumes.. The extent of such transactions is given in the following table. The percentage mentioned in the table is with respect to their total trades in the scrip during the relevant period (significant percentages shown in bold):
Table 5: Trading data of two brokers – matched transactions
|
Sl
No
|
Name of
the member
|
P K Kothari
|
%
|
S K Kejriwal
|
%
|
P L Kejdiwal
|
%
|
D K Lodha
|
%
|
|
1
|
Pramod K
Kothari -D475
|
71200
|
43.35
|
79500
|
48.40
|
0
|
0.00
|
300
|
0.18
|
|
2
|
Santosh
K Kejriwal Sec- D144
|
79500
|
100.00
|
0
|
0.00
|
0
|
0.00
|
0
|
0.00
|
|
3
|
Purshottam
Lal Kejdiwal - D739
|
0
|
0.00
|
0
|
0.00
|
200
|
0.24
|
46000
|
55.62
|
|
4
|
Dinesh Kumar
Lodha - D728
|
300
|
0.58
|
0
|
0.00
|
46000
|
88.55
|
0
|
0.00
|
(The percentage mentioned in the table is with respect to their total trades in the scrip during the relevant period (significant percentages shown in bold))
It is seen that the transactions executed between P.K.Kothari and S.K.Kejriwal and between P.L.Kejdriwal and D,K,Lodha constituted a major portion of trading in the share and helped in creating ed an artificial market in the share. . Hence, the price rise in the share can be attributed to the dealings by these brokers.
GLOBE STOCKS & SECURITIES LTD.
2.1652.5 Globe Stocks & Securities Ltd. is another of one of thethe “small cap” listed companies at CSE which witnessed a significant price increase during the period under scrutiny. The share price of the company increased from Rs. 19.10 to Rs. 77.65, i.e. a rise of 307% increase in 4 months 10 days. The shares of the company isshares of the company are also listed on Magadh Stock Exchange, Uttar Pradesh Stock Exchange, Bhubaneshwar Stock Exchange, Cochin Stock Exchange and Ludhiana Stock Exchange.
2.176 It is observed from the latest annual report of the company sent by CSE that in the year 2004-05 the share capital of the company was Rs.10.50 crore against which the company made grossed receipts an income of Rs.87 lacslakh which largely accounted for meeting its expenditure (Rs.33 lacslakh) and consequently its net profit (PAT) for the year was only Rs.45 lacslakh. During the previous year the company had incurred a loss of Rs.8.58 lacslakh. The company has an accumulated loss of Rs.32 lacslakh at the end of financial year 2004-05.
2.187 As per the latest compliance report obtained from CSE, the company has not submitted the following documents / reports with the exchange:
a) Share-holding pattern in respect of 1st and 3rd quarter for the year 2002-03 and 2nd quarter for the year 2005-06.
b) Unaudited quarterly results in respect of the 1st, 2nd and 3rd quarter for the year 2002-03, 3rd quarter for the year 2003-04 and 2nd quarter for the year 2005-06.
The company has an accumulated loss of Rs. 32 lacs at the end of the financial year 2004-05. The company has not shown any interest in filing quarterly results with the company since 2002-03. The price of the shares have shown an increase of 305% in a short duration of three months..
2.1982.6 A furtherA analysis of the trading data revealed that primarily two brokers have traded in the scrip, the details of which are given below:
Table 6 Trading data of two brokers accounting for 63% of trading volume
|
Sl.
No.
|
Member
Name
|
Total
Volume
|
% to
Scrip Total
|
|
1
|
Ashish Stock Broking- D498
|
3522910
|
31.10
|
|
2
|
Sunil Kedia - D712
|
3539800
|
31.25
|
2.1209 A further analysis of the trading data revealed that the above members have matching transactions among themselves. The extent of such transactions is given in the following table:.
The percentage mentioned in the table is with respect to their total trades in the scrip during the relevant period (significant percentages shown in bold):
Table 7: Trading data of two brokers – matched transactions
|
Sl
No
|
Name of the member
|
Ashish
|
%
|
Sunil Kedia
|
%
|
Sanju Kabra
|
%
|
|
1
|
Ashish Stock Broking- D498
|
0
|
0.00
|
3484800
|
98.92
|
10000
|
0.28
|
|
2
|
Sunil Kedia - D712
|
3484800
|
98.45
|
0
|
0.00
|
0
|
0.00
|
(The percentage mentioned in the table is with respect to their total trades in the scrip during the relevant period (significant percentages shown in bold))
2.210 It is clearly evident from the can be seen from the above tables that the two stock brokers viz. Ashish Stock Broking and Sunil Kedia have been able to create an artificial a fiction of a market in the shares of the company by executing large volume of transactions among themselves the transactions executed between Ashish Stock Broking and Sunil Kedia constituted a large portion of trading in the share. Hence, the inflated price in the share can be attributed to the dealings by these brokers.
GOENKA BUSINESS & FINANCE LTD.
2.72.221 Goenka Business & Finance Ltd. is another of the “small cap” companies one of the listed on the companies at CSE which witnessed a significant price fall during the period under scrutiny. Unlike in the other three cases analysed above, theThe share price of this e company fell sharplyhas fallen from Rs. 60.10 to Rs. 13.60, i.e. a decline 77306% in 7 months and 17 days.
The exchange has informed that the company has not submitted balance sheet for the year 2003-04 and 2004-05.Curiously, the sharp decline in shaere prices was also the result of the common modus operandi of matched transactions between the same two brokers viz. Ashish Stock Broking and Sunil Kedia, who dealt in the share of Globe Stock and Securities Ltd.,
2.223 As per the latest compliance report obtained from CSE, the company has not submitted the following documents / reports with the exchange:
a) Balance sheet for the years 2003-04 and 2004-05
b) Share-holding pattern for the years 2002-03, 2003-04, 2004-05 and 2005-06.
c) Unaudited quarterly results for the year 2002-03, 2003-04, 2004-05 and 2005-06
2.243 The exchange has suspended trading in the shares of the company with effect from November 22, 2005 for partial / non-compliance of listing agreement of the exchange.
The reason for sudden activity in the shares of the company is not clear. Share price of the company has come down with the help of matching transactions. As per the latest compliance report obtained from CSE, the company has not submitted the following documents / reports with the exchange:
a) Balance sheet for the years 2003-04 and 2004-05
b) Share-holding pattern for the years 2002-03, 2003-04, 2004-05 and 2005-06.
c) Unaudited quarterly results for the year 2002-03, 2003-04, 2004-05 and 2005-06
The exchange has suspended trading in the shares of the company with effect from November 22, 2005 for partial / non-compliance of listing agreement of the exchange.
2.82.254 A further aAnalysis of the trading data given in the Tables below, showsrevealed that only two have primarily two brokers have traded in the share and accounted for 100% of the volume through matched transactions.scrip, the details of which are given below:
Table 8:a Trading data of two brokers accounting for 100% of trading volume
|
Sl.
No.
|
Member
Name
|
Total
Volume
|
% to
Scrip Total
|
|
1
|
Ashish Stock Broking- D498
|
3102500
|
50
|
|
2
|
Sunil Kedia - D712
|
3102500
|
50
|
Table 9: Trading data of two brokers – matched transactions
|
Sl
|
Name of the member
|
Ashish
|
%
|
Sunil Kedia
|
%
|
|
1
|
Ashish Stock
Broking- D498
|
0
|
0.00
|
3102500
|
100.00
|
|
2
|
Sunil Kedia - D712
|
3102500
|
100.00
|
0
|
0.00
|
The percentage mentioned in the table is with respect to their total trades
in the scrip during the relevant period (significant percentages shown in bold).
2.265 This company also, like in the earlier instances, have paid scant regard to disclosures and have not filed any past or current financial information. In the absence of any information it is difficult to ascribe any reason for the sudden activity on the shares of the company except to state that through matched transactions, the two brokers were able to create a false market in the share, with a view to accommodate. It can be seen from the above table that the like in the previous scrip, Ashish Stock Broking and Sunil Kedia have traded among themselves. Also, they were the only brokers who have dealt in the scrip. Hence, the price fall of (295%) in seven months can be attributed to the dealings by these brokers.
CORONET INDUSTRIES LTD.
2. .9276 Coronet Industries Ltd. Is another “small cap” one of the listed companyies listed on the at CSE which witnessed a significant price increase during the period under scrutiny. The share price of the company increased from Rs. 160 to Rs. 270, i.e. a rise of 69% increase in 7 months 21 days.
2.287 It is observed from the latest annual report of the company sent by CSE that in the year 2003-04 the share capital of the company was Rs.70 lacslakh against which the company made grossed receipts an income of Rs.17 lacslakh which largely accounted for meeting its expenditure (Rs.15.55 lacslakh) and consequently its net profit for the year was only Rs.1.58 lacslakh. The exchange has informed that they have not submitted balance sheet for the year 2004-05.
2.298 As per the latest compliance report obtained from CSE, the company has not submitted the following documents / reports with the exchange:
a) Balance sheet for the year 2004-05
b) Share-holding pattern in respect of the 2nd quarter for the year 2005-06.
c) Unaudited quarterly results in respect of the 1st and 2nd quarter for the year 05-06
It is observed that the price of the scrip has risen from Rs. 160 to Rs. 270 (69% increase) in 7 months 21 days.
In the light of lack lustreer track record of poor performance by the company in 2003-04 coupled with the absence of any information about the company, on account of non-submission of balance sheet for 2004-05 and quarterly results during the current year, no justification was apparent for the suddentsudden spurt in prices.of 2004-05, the rise in the price is inflated and designed to create false market.
2.3010 .29 A further analysis of the trading data revealed that primarily two brokers have traded in the scrip, the details of which are given below:
Table 10 Trading data of two brokers accounting for 99% of trading volume
|
Sl.
No.
|
Member
Name
|
Total
Volume
|
% to
Scrip Total
|
|
1
|
Ahilya Commercial- D588
|
260350
|
46.85
|
|
2
|
Murari Lal Goenka- D835
|
236700
|
42.59
|
2.31 A fFurther analysis of the trading data revealed that the above members not only acted as counter party of their own transactions, they also have executed matching transactions among themselves. The extent of such transactions is given in the following table. The percentage mentioned in the table is with respect to their total trades in the scrip during the relevant period (significant percentages shown in bold):
Table 11 Trading data of two brokers – matched transactions
|
Sl
|
Name of the member
|
Ahilya
|
%
|
M L Goenka
|
%
|
|
1
|
Ahilya Commercial- D588
|
213600
|
82.04
|
22550
|
8.66
|
|
2
|
Murari Lal Goenka- D835
|
22550
|
9.53
|
207800
|
87.79
|
(The percentage mentioned in the table is with respect to their total trades in the scrip during the relevant period (significant percentages shown in bold):
2.32 Thus these two brokers Ahilya Commercial and Murari Lal Goenka, through matched transaction among themselves have been able to create a false market in the shares of the company and contributed to the artificial rise in the price. Of the two brokers, SEBI, had passed orders on September 29, 2005, against Ahilya Commercial, prohibiting them from dealing in securities. It can be seen from the above table, Ahilya Commercial and Murari Lal Goenka have traded among themselves. Therefore, the price rise in the scrip can be attributed to these two brokers.
3. Summary of the findings
3.1 The facts brought out in the foregoing paragraphs and the analysis of the trade and order log as given in the tables above lead to the following conclusion –
a) All the five companies have lack lustre mediocre to poor track record which does not warrant sharp price variation in a relatively short period.
b) These companies have not made the necessary financial disclosures to the stock exchange, including submission of annual/quarterly reports. There is therefore no information about these companies available to the market.
c) The trading volumes in the shares of these companies have invariably been created by a few brokers trading among themselves and through matched transactions (i.e. clients allowed to place simultaneously both buy and sale orders of same quantity at the same price in the selected shares), often executed on a single terminal of the broker. Curiously while in four instances, there was a sharp rise in share prices, in one there was sharp decline, all through a common modus operandi. These brokers have therefore created a false market in the shares of the companies. …..
a) These brokers have allowed their clients to place simultaneously both buy and sale orders of same quantity at the same price in the selected shares.
a) Most of the trades between the said brokers among themselves have identical quantities and rates. Order time of these trades show that both buy and sale orders were given either in identical time or within a gap of few seconds.
a) Through matched transactions there has been significant variation in the price of the above-mentioned shares.
a) All the above shares are local and illiquid.
a) Few brokers have transacted in the above shares of the company and those transactions have an upward / downward impact on price.
a) It is apparent that the brokers had transacted in the above shares on behalf of their
clients who had ulterior motive of raising price.
d) As the variation in the price of the shares rose above scrips is significantly, except in one case, there is a possibility that investors without having proper information about the company may be lured to these illiquid scrips and get trapped in the process, which is highly detrimental to the interest of the investors.
e) Clearly, the ultimate objective behind the creation of a false market in these shares, was either to lure investors, or perhaps to legitimising the gains.
f) SEBI vide order dated September 29, 2005 in a similar cases has already passed direction against Shyam Lal Sultania, member of CSE in the case of Subh Laxmi Projects Ltd. and Amluckie Investment Co. Ltd. and Ahilya Commercial Pvt. Ltd., member of CSE in the case of Subh Laxmi Projects Ltd; directing them not to buy, sell or deal in securities in any manner, either directly or indirectly, till further directions
3.2 In sum, it is evident from the above analysis of the five companies, all of which are listed in CSE, and one of which is listed also at Magadh Stock Exchange, Uttar Pradesh Stock Exchange, Bhubaneshwar Stock Exchange, Cochin Stock Exchange and Ludhiana Stock Exchange, that the brokers have followed a common modus operandi of artificially inflating 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. Besides the companies themselves have recorded poor or lack lustre negative financial performance and have not bothered to file up to date financial statements with CSE. Such acts by the brokers pose a serious risk to the stability and settlement system of the stock exchange besides raising the spectre that innocent investors may get drawn by the artificial trading volumes generated by these brokers and may in the process be beguiled into investing in the shares of these fundamentally weak companies at unjustifiable market prices, only to be left adrift.
3.3 The findings of the preliminary inquiry investigation as detailed above also establishes a prima facie 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. There is a reasonable ground to believe that the transactions in the above securities are being dealt in a manner detrimental to the investors and securities market. SEBI is initiating formal investigations into the matter.
3.4 In view of the above, I am satisfied that pending investigation by SEBI, it is necessary to issue an order under Section 11 (4) (b) read with Section 11 (1) under 11B of the SEBI Act in order to protect the interests of the investors and also the integrity of the securities market.
4 ORDER
4.1 In exercise of the powers conferred upon me by virtue of Section 19 read with Section , 11 (4) (a), 11(4)(b) and Section 11 (1) and 11 B of the SEBI Act it is hereby directed, pending investigation, that :
A) the following ten stock brokers of CSE shall not buy, sell or deal in securities, in any manner, either directly or indirectly, till further directions in this regard:
1. Basant Periwal & Co.
2. Binoy Poddar
3. P K Agarwal & Co.
4. Pramod K Kothari
5. Purshottam Lal Kejdiwal
6. Santosh K Kejriwal Securities (P) Ltd.
7. Dinesh Kumar Lodha
8. Ashish Stock Broking
9. Sunil Kedia
10. Murari Lal Goenka
11. Shyam Lal Sultania
12. Ahilya Commercial Pvt. Ltd.
B) In respect of Shyam Lal Sultania and Ahilya Commercial Pvt. Ltd., b Brokers of CSE (mentioned at Sr. No. 11 & 12 of para no. 4.1 A) against whom another order dated September 29, 2005 has been passed , twhereby hese two brokers they were are directed not to buy, sell or deal in securities in any manner, either directly or indirectly, both the orders will run concurrently, till further directions in them in both the orders.
C) The trading in the following companies shall remain suspended till further directions in this regard.
1. Nageshwar Investment Ltd.
2. Adinath Bio-labs Ltd.
3. Globe Stocks & Securities Ltd.
4. Goenka Business & Finance Ltd.
5. Coronet Industries Ltd.
The above directions shall take effect immediately and shall be in force until further orders. The stock brokers and the companies may file their objections, if any, to this order within 15 days from the date of this order and, if they so desire, avail themselves of an opportunity of personal hearing at the Securities and Exchange Board of India, Head Office, First Floor, Mittal Court, ‘B’ Wing, Nariman Point, Mumbai 400021 on a date and at a time to be fixed on specific request, to be received in this behalf from the stock brokers within above 15 days from the date of this order.
Place: Mumbai
Date:30/11/2005
G. ANANTHARAMAN
WHOLE-TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA