July 02, 1998
PR No. 173/1998

Investigation Enforcement & Surveillance

M/s. Amit International Ltd (AIL) had come out with a public issue of 15,39,000 shares at a premium of Rs.15 per share, which opened on 29th September ,1995., the earliest closing date was 5th October '95. The shares were listed on 18/12/95 at Rs. 35/- and moved to Rs. 290/- in just 30 trading sessions. The scrip attracted very high volumes right from the first day of trading as compared to the floating stock in the scrip. 

SEBI conducted detailed investigation into the matter and the finding of the investigation concluded that the scrip of AIL had witnessed an artificial price rise, abnormal volumes and a false market was created by a group of persons acting in concert which was in violation of provisions of SEBI ( Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulation, 1995. 

Subsequently, after inquiry proceedings and a personal hearing with the Chairman, SEBI has debarred the following persons / entities from dealing in the Securities Market for a period of five years :

  1. Mukut Shares & Stock Brokers (P) Ltd., and its directors Shri Dimple Shah and Shri Hitesh Kamdar

  2. Shri Vijay M. Gandhi

  3. Shri Atul C. Doshi.

The above mentioned penalty would come into force with effect from July 15, 1998.