September 03, 1998
PR No. 247/1998

SUSPENSION OF SHRI KAILASH CHAND BADAYA, 
MEMBER, JAIPUR STOCK EXCHANGE
Investigation Enforcement & Surveillance

SEBI conducted investigation about the sudden price rise of M/s. Rahul Merchandising Ltd on the Jaipur Stock Exchange. The price rose from Rs.27/- to Rs120/- in the period from November 20, 1995 to January 4, 1996. During the investigation it was found that the said member was instrumental in creating a false market resulting in an artificial price rise. On pursuant to submission of investigation report an enquiry officer was appointed by SEBI in respect of Shri Kailash Chand Badaya, Member Jaipur Stock Exchange. On the basis of the report submitted by the enquiry Officer, a show cause notice was issued under the SEBI (Stock Broker and Sub Broker), Regulation, 1992 to Shri Kailash Chand Badaya. After considering the material on record submissions made from time to time and reasons given in the enquiry report, SEBI found him guilty of violating SEBI (Stock Broker and Sub-Broker). Therefore, an order has been passed suspending him for a period of six months. The suspension order shall come into effect from September 10, 1998.