GENERAL MANAGER
INTEGRATED SURVEILLANCE DEPARTMENT
Phone No : 22835701
Email : ravi@sebi.gov.in
IES/ISD2/RR/SP/ETP/28762/2004
December 20, 2004
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Pravin Sharma
180, M.G. Road
Kolkata 700 007
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Kalpesh M. More,
A-4 Radhey Apartments,
Nr. Champaner Socy., Usmanpura,
Ahmedabad- 380 013
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Om Prakash Jha,
234/3 Jawahar Nagar,
Gr. Flr., Goregaon (W)
Mumbai – 400 062
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Sub: Notice to show cause notice under Section 11, 11(4) read with Section 11(B) of the SEBI Act read with Regulation 11 of SEBI (Prohibition of Fraudulent and Unfair Trade practices relating to securities market) Regulations, 2003
Investigations have been conducted by SEBI in the matter of ETP Corporation Ltd. In this regard please find enclosed finding of investigation at Annexure I.
The findings of investigation brings out that the major shareholders – Laffan Software Ltd., NE Electronics Ltd., Ispat Sheets Ltd., Conrad Telefilms Ltd. and Online Information Technology Ltd. transferred the shares of the company in large quantities through conduits such as Parklight Securities Ltd., Shri Dhaval Shah and Shri Mukesh Choksi prior to the issuance of the advertisement so that they could be offloaded in the market when interest was created after the issuance of appealing advertisements. The major shareholders offloaded their shareholding as part of a scheme orchestrated to mislead investors by issuing unsubstantiated appealing advertisements and induce investors to trade in the shares of the company. All of you i.e., the company (ETP Corporation Ltd.), directors of the company Shri Suresh K Jajodia, Vinod Uniyal, Kalpesh M. More, Om Prakash Jha, Joybrata Sen & Pravin Sharma, major shareholders (as named earlier), Shri Dhaval Shah and Shri Mukesh Choksi have acted together and indulged in creation of artificial trading interest in the shares of the company and in giving false and misleading appearance of trading in the shares of the company. All of you have together also engaged in a fraud on shareholders and deceptive behaviour by suggesting untrue facts and employing a scheme and an act to defraud. All of you have together indulged in dealing in securities of the company in fraudulent manner.
In view of the above you are called upon to show cause as to why suitable directions including directions of debarring you from accessing the securities market and also prohibiting you from buying, selling or dealing in securities for a specific period should not be passed under section 11, 11(4), 11B of the SEBI Act 1992 read with regulation 11 and 13 of the (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003. The acts committed by the entities attract the provisions of Regulations 3, 4(b), 5, 6(a) of SEBI (Prohibition of Fraudulent and Unfair Trade practices relating to securities market) Regulations, 1995 and 2(c), 3 and 4 of SEBI (Prohibition of Fraudulent and Unfair Trade practices relating to securities market) Regulations, 2003.
Your reply if any should reach us within 15 days on receipt of this notice. A copy of the reply may also be sent in a soft copy. While replying you may also indicate whether you desire to be personally heard in this case. In case no reply is received from you within the specified period it will be presumed that you have no explanation to offer and action may be initiated as per law.
Yours faithfully,
R RAVICHANDRAN