PRESS RELEASE - SEBI

February 28, 1998
PR No. 38/1998

SUSPENSION OF BROKERS OF MADRAS STOCK
EXCHANGE & COIMBATORE STOCK EXCHANGE


INVESTIGATION, ENFORCEMENT AND SURVEILLANCE Dept.

SEBI had initiated investigations into the artificial price rise and market manipulation in the scrip of M/s. Paro Leasing & Finance Ltd, a company with its registered office at Chennai. The price in the scrip had registered an increase of approx. 900% in just 30 days around the period September - October, 1995. Investigations revealed that a group of persons/entities acting in concert had created an artificial price rise and false market in this scrip. On the basis of the findings of the investigation report, enquiry proceedings under SEBI (Stock Brokers & sub-Brokers) Regulation, 1992, were ordered against, among others, M/s. Vinitha Associates, Broker, Madras Stock Exchange (MSE), M/s. Dolia & Dolia, Broker, MSE and M/s. Libran Shares Pvt Ltd, Broker, Coimbatore Stock Exchange. Pursuant to the completion of enquiry proceedings, SEBI issued show cause notices to the aforesaid brokers under Regulation 29 of SEBI (Stock Brokers & sub-Brokers) Regulation, 1992. 

After considering their replies and the submissions made during the course of personal hearing, SEBI has concluded that the conduct of these brokers facilitated creation of false market and artificial price rise in the scrip of M/s. Paro Leasing & Finance Ltd. Thus, the brokers have failed to maintain high standards of integrity and fairness in conducting their business. Therefore, SEBI has found the aforesaid members guilty of violating the provisions of Regulation 7 of SEBI (Stock Brokers & sub-Brokers) Regulation, 1992. 

After considering the Enquiry officer´┐Żs report & the brokers submissions, SEBI has ordered the suspension of registration of, 

     1.M/s. Vinitha Associates, Broker, MSE, for a period of 3 months 
     2.M/s. Dolia & Dolia, Broker, MSE, for a period of 1 month 
     3.M/s. Libran Shares Pvt Ltd, Broker, Coimbatore Stock Exchange, for a period of 6 months. 

All the aforementioned suspensions would come in effect from March 18, 1998.