June 12, 1998
PR No. 143/1998

Prosecution launched by SEBI

Investigation, enforcement and surveillance dept.

SEBI has filed a criminal complaint in the Court of the Addl. Chief Metropolitan Magistrate, Economic Offences, Chennai against Tatia Leasing and Finance Ltd., Mr. Pannalal Tatia, its Director, Mrs and Mr. Bokharia, M/s. Bokharia Investments, M/s. Unique Investments, Mr. Sampath Kumar Parekh, M/s. Brilliant Investments, Mr. Manohar Jain, M/s. Swito Finance and Estates Ltd., Mr. Vimal Doshi and M/s. Surbhi Stocks for manipulation of the price of the shares of M/s. Paro Leasing & Finance Ltd. The price of the shares of M/s. Paro Leasing & Finance Ltd., rose from Rs.9.50 to Rs.90/- between August 24, 1995 and September 29, 1995 in 22 trading sessions. During investigations it was found that the aforesaid entities cornered the shares of M/s. Paro Leasing & Finance Ltd., and they had, in their possession, 80% of the floating stock. This scrip was traded in substantial volumes and the prices rose to unrealistic levels in a short period. It was found during investigation that these entities rigged the price of the shares. The prosecution was launched under Section 24 of the SEBI Act, 1992, for the violation of Regulation 4 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Markets) Regulations, 1995.