July 02, 1998
PR No. 172/1998

Investigation Enforcement & Surveillance

M/s. Paro Leasing & Finance Ltd, a scrip listed on The Stock Exchange, Mumbai (BSE), The Madras Stock Exchange Association Ltd (MSE) and other Exchanges had witnessed an artificial price rise from Rs.10/- to Rs. 90/-, along with abnormal volumes in the period September, 1995 to October, 1995. SEBI had conducted detailed investigations and concluded that an artificial price rise and false market had been created in the scrip, by Tatia Finance & Leasing Ltd and other connected person. SEBI has already launched prosecution against these persons for violation of SEBI ( Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulation, 1995. Also on the basis of the findings of the investigation report SEBI initiated enquiry proceedings against three brokers of BSE & MSE for violation of Regulation 7 of SEBI ( Stock Brokers & Sub-brokers) Regulation, 1992. 
Pursuant to the findings of the enquiry officer and a personal hearing before Chairman, SEBI, the Board has found the following three brokers guilty of violating the provisions of SEBI ( Stock Brokers & Sub-brokers) Regulation, 1992 and has suspended their registration for a period of one month :

  1. M/s. Darla �N� Darla, member, MSE

  2. M/s. Sri Pal Jain, member, BSE

  3. M/s. Pawan J. Chowdhary, member, BSE

The suspension would come into force with effect from July 15, 1998.