December 17, 1998
PR No. 339/1998

Investigation, Enforcement & Surveillance Dept.

SEBI initiated investigations into the alleged price manipulation in the scrip of Gujrat Cotex Ltd. specially pertaining to the period July 12 to August 28, 1995 when price of the scrip had moved from Rs. 18/- to Rs. 180/-. Investigations revealed that Shri Amrish Valia, Shri Rajan P. Mehta and Shri Dimple Shah had dealt in the said scrip with an intention to manipulate the prices of the said shares. These entities were responsible for creating a false market and artificial rise in the price of the scrip. A notice was issued to them to show cause as to why appropriate directions prohibiting them from further dealing in the securities market should not be issued under Regulation 11 read with Regulation 12 (a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995, read with Section 11 (B) of SEBI Act, 1992. They were also given an opportunity to appear before the Chairman SEBI for personal hearing, which was not availed by them. After carefully examining the records and other relevant material, SEBI passed an order prohibiting Shri Rajan P. Mehta, Shri Amrish Valia and Shri Dimple Shah from dealing in securities in any manner for a period of five years w.e.f. December 10, 1998.