I. E. S.

SEBI initiated investigations into the alleged price manipulation in the scrip of Adeshwar Cotton Ltd. The price of the scrip had moved from Rs. 45/- to Rs. 215/-. Investigations revealed that M/s. Kanan Dalal Securities Ltd, Shri R. K. Patel and Shri Shailesh Thakkar had dealt in the said scrip with an intention to manipulate the prices of the said shares. These entities were responsible for creating a false market and artificial rise in the price of the scrip. A notice was issued to them to show cause as to why appropriate directions prohibiting them from further dealing in the securities market should not be issued under Regulation 11 read with Regulation 12 (a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995, read with Section 11 (B) of SEBI Act, 1992. They were also given an opportunity to appear before the Chairman SEBI for personal hearing, which was not availed by M/s. Kanan Dalal Securities Ltd. and Shri R. K. Patel. After carefully examining the records and other relevant material, SEBI passed an order prohibiting M/s. Kanan Dalal Securities Ltd. Shri R. K. Patel and Shri Shailesh Thakkar from dealing in securities in any manner for a period of one years w.e.f. March 01, 2002.