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October 05, 2005
PR No. 136/2005
ELTROL LTD. AND ITS DIRECTORS DEBARRRED
SEBI vide order dated October 5, 2005 has issued the following directions in the matter of Eltrol Ltd. (Eltrol):
The directors of Eltrol namely, Shri Chittarmal Sharma, Shri Deepak Rathod, Shri Sanjay G Tripathi and Shri Niraj Sanghvi are hereby directed not to buy, sell, pledge or deal in securities of Eltrol, directly or indirectly, till further directions in this regard. Eltrol is directed not to issue any equity shares or any other instrument convertible into equity shares or alter its capital structure in any manner till further directions in this regard.
The following top 10 trading clients at BSE are directed not to buy, sell or deal in securities of Eltrol, in any manner, directly or indirectly, till further directions in this regard:
1. PRIYAM SECURITIES (PREMSUKH KANDELWAL)
2. PRAVINKUMAR JAIN (MAARS SOFTWARE INTERNATIONAL LTD.)
3. ANIL SOLANKI
4. MAHESH VORA (JMP SECURITIES PVT Ltd)
5. NAVIN PATEL
6. AMIT SAHITA FINANCE PVT. LTD.
7. BHAGWANDAS JAJU
8. JAYESHKUMAR SHAH
9. SHAILESH NISSAR
10. NARESH JAIN
The following entities who are apparently connected with / related to each other are directed not to buy, sell or deal in securities of Eltrol, in any manner, directly or indirectly, till further directions in this regard:
1. DALSUKHBHAI PATEL
2. VINOD PATEL
3. RAMNIKLAL PATEL
4. VIKAS NAKNAVAR
5. VIKAS BENGANI
6. ANIL KANTILAL SHAH
7. RAMDAS KSHIRSAGAR, DIRECTOR OF IFSL LTD.
8. CHARU NIRAJ SANGHVI
9. SHRI VIKRAM SINGH RAJPUT
10. SHRI SHIVARAM MOTILAL MEENA
11. SMT. KUSUM DEEPAK RATHOD
12. T H VAKIL SHARES AND SECURITIES P LTD.
13. MANGALABEN A DOSHI
14. ASHWIN D DOSHI
15. VIRAL C SHAH
16. JIGNESH P. LAKHLANI
17. NAVIN TRIKAMDAS THAKKAR
18. TARUN V. SHAH
19. SHILPA P SAKPAL
20. AMIT EASY FINANCE LIMITED
21. HARSIDDHI MAN-POWER SERVICES PVT LTD
22. SHREERATH MARKETING PRIVATE LIMITED
23. LILA LABORATORIES (INDIA ) LTD
24. HITENDRA CHATURBHAI MAKWANA
25. KARNI AJAYSINGH JAGDISHSINGH RATHORE
That the following brokers of BSE are hereby directed not to buy, sell or deal in securities of Eltrol, directly or indirectly, till further directions in this regard:
1. SANCHAY FINCOM Ltd.
2. BAKLIWAL FINANCIAL SERVICES (INDIA) P Ltd.
3. M/S. HARIKISHAN HIRALAL
4. JMP SEC PVT Ltd
5. P.J.CHAUDHARY
6. AMIT SAHITA FINANCE PVT.
7. M R SHARE BROKER LTD
8. S.M.NISSAR
9. NCJ SHARE & STOCK BROKERS
10. ADOLF PINTO
11. INDUS PORTFOLIO P Ltd.
That the following brokers of NSE are hereby directed not to buy, sell or deal in securities on behalf of Eltrol, directly or indirectly, till further directions in this regard:
1. SS CORPORATE SECURITIES LIMITED
2. INDUS PORTFOLIO (P) LTD.
3. INDIABULLS SECURITIES LTD.
4. INSIGHT SHARE BROKERS PVT. LTD.
5. BAKLIWAL FINANCIAL SERVICES (INDIA) P.LTD.
6. SSJ HOLDINGS PRIVATE LIMITED
7. INSIGHT SHARE BROKERS PVT. LTD.
Eltrol is directed to cease dealings in the securities market in any manner, directly or indirectly, till further directions.
The major stock exchanges viz. BSE and NSE and the depositories viz. NSDL and CDSL are directed to ensure that all the above directions are strictly enforced.
In the recent past, there was an unprecedented increase in price and trading interest in the share of Eltrol (which has recently changed its name to �Shree Mahaganga Sugar Mills Ltd.�), on BSE. During the period from March 1, 2005 to September 23, 2005, the price of the share of Eltrol (face value Re.1/-), duly adjusted for corporate actions, on BSE, opened at Rs.0.47 touched a high of Rs. 3.52 on September 1, 2005, a low of Rs. 0.43 on March 2, 2005 and closed at Rs.1.85 on September 29, 2005. Thus, during the 128 trading days from March 1, 2005 to September 1, 2005, the price of the share on BSE has shown a rise of 649%. Upon examination, SEBI found that there is no identifiable promoter of Eltrol. The directors of the company who claim to be professional directors do not appear to have any knowledge about the industry in which the company is purportedly operating. The directors of the company are engaged in courier business which has no apparent relation with engineering or sugar business that Eltrol is purportedly engaged in.
The past financial performance of the company has been dismal and the company has accumulated losses. The company has not declared any dividend for the past many years. The company has discontinued production activities and is purportedly exploring entering into new business areas. The company has made preferential allotment to two NBFCs namely Oudh Finance & Investment Private Limited and Basmati Securities Pvt. Ltd. at a premium of Rs.6.50 per share (face value of Re.1/-). The source of funds of these NBFCs is not known and probably these NBFCs have taken Fixed Deposits from the public, the repayment of which could be imperiled by the unwise if not blatantly manipulative action of the promoters / management of these NBFCs. In any case, the rationale for the two NBFCs to invest in Eltrol shares at such a huge premium needs further probe. That apart, Eltrol has apparently diverted the money received through preferential allotment to stock brokers for indulging in stock market operations and has tried to hide this fact by claiming that the funds have been invested in the assets of the company. The issue of working capital funds belonging to corporates being diverted for stock market operations which activity is not in consonance with the regular business activities of corporates has been a major concern for SEBI in the recent past. The activities of Eltrol as detailed above confirm the concerns of SEBI in this regard.
Besides the above, SEBI found that there were various other announcements by the company such as announcement of bonus issue, taking over of another company etc. probably made with a view to paint a rosy picture. During this period, various major trading clients at BSE were found to have made off-market transfers to certain common entities indicating that all these entities were connected with / related to each other. In view of the above, SEBI is initiating investigations into the matter and in the meanwhile, SEBI has, under Sections 11B, 11D and 11(4)(b) of SEBI Act, 1992, issued ex-parte ad interim directions with immediate effect as above.
Mumbai
October 5, 2005
For full copy of order against ADOLF PATRICK PINTO, click here.
For full copy of order against ADOLF PATRICK PINTO,M/S, click here.
For full copy of order against AMIT EASY FINANCE LTD., click here.
For full copy of order against AMIT SAHITA FINANCE PVT.LTD., click here.
For full copy of order against AMIT SAHITA FINANCE PVT.LTD., click here.
For full copy of order against ANIL KANTILAL SHAH, click here.
For full copy of order against ANIL SOLANKI, click here.
For full copy of order against ASHWIN D.DOSHI, click here.
For full copy of order against BAKLIWAL FINANCIAL SERVICES (INDIA) PVT.LTD., click here.
For full copy of order against BAKLIWAL FINANCIAL SERVICES (INDIA) PVT.LTD., click here.
For full copy of order against BHAGWANDAS JAJU, click here.
For full copy of order against CHARU NIRAJ SANGHVI, click here.
For full copy of order against CHITTARMAL SHARMA, click here.
For full copy of order against DALSUKHBHAI D.PATEL, click here.
For full copy of order against DEEPAK RATHOD, click here.
For full copy of order against ELTROL LTD., click here.
For full copy of order against HARIKISHAN HIRALAL, click here.
For full copy of order against HARIKISHAN HIRALAL,M/S, click here.
For full copy of order against HARSIDDHI MAN-POWER SERVICES PVT.LTD., click here.
For full copy of order against HITENDRA CHATURBHAI MAKWANA, click here.
For full copy of order against INDIABULLS SECURITIES LTD., click here.
For full copy of order against INDUS PORTFOLIO PVT.LTD., click here.
For full copy of order against INDUS PORTFOLIO PVT.LTD., click here.
For full copy of order against INSIGHT SHARE BROKERS PVT.LTD., click here.
For full copy of order against JAYESH KUMAR SHAH, click here.
For full copy of order against JIGNESH P.LAKHLANI, click here.
For full copy of order against JMP SECURITIES PVT.LTD., click here.
For full copy of order against KARNI AJAYSINGH JAGDISHSINGH RATHORE, click here.
For full copy of order against KUSUM DEEPAK RATHOD, click here.
For full copy of order against LILA LABORATORIES (INDIA) LTD., click here.
For full copy of order against MAHESH VORA, click here.
For full copy of order against MANGALABEN A.DOSHI, click here.
For full copy of order against MR SHARE BROKING PVT.LTD., click here.
For full copy of order against NARESH JAIN, click here.
For full copy of order against NAVIN PATEL, click here.
For full copy of order against NAVIN TRIKAMDAS THAKKAR, click here.
For full copy of order against NCJ SHARE & STOCK BROKERS LTD., click here.
For full copy of order against NIRAJ SANGHVI, click here.
For full copy of order against PAWAN J.CHAUDHARY, click here.
For full copy of order against PAWAN J.CHAUDHARY,M/S, click here.
For full copy of order against PRAVINKUMAR JAIN, click here.
For full copy of order against PREMSUKH BANKATLAL KHANDELWAL, click here.
For full copy of order against PRIYAM SECURITIES, click here.
For full copy of order against RAMDAS KSHIRSAGAR, click here.
For full copy of order against RAMNIKLAL MANJIBHAI PATEL, click here.
For full copy of order against SANCHAY FINCOM LTD., click here.
For full copy of order against SANJAY G.TRIPATHI, click here.
For full copy of order against SHAILESH M.NISSAR, click here.
For full copy of order against SHAILESH M.NISSAR,M/S, click here.
For full copy of order against SHAILESH NISSAR, click here.
For full copy of order against SHILPA P.SAKPAL, click here.
For full copy of order against SHIVARAM MOTILAL MEENA, click here.
For full copy of order against SHREERATH MARKETING PVT.LTD., click here.
For full copy of order against SS CORPORATE SECURITIES LTD., click here.
For full copy of order against SSJ HOLDINGS PVT.LTD., click here.
For full copy of order against T.H.VAKIL SHARES & SECURITIES PVT.LTD., click here.
For full copy of order against TARUN V.SHAH, click here.
For full copy of order against VIKAS GANESHMAL BENGANI, click here.
For full copy of order against VIKAS GOURIHAR NARNAVAR, click here.
For full copy of order against VIKRAM SINGH RAJPUT, click here.
For full copy of order against VINOD D.PATEL, click here.
For full copy of order against VIRAL C.SHAH, click here.
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