December 31, 1998
PR No. 354/1998

INVESTIGATION, ENFORCEMENT & SURVEILLANCE DEPT.

The price in the scrip of M/s. Arpan Leasing & Co. Ltd.(ALCL), had witnessed an unprecedented rise from Rs. 15/- in September 95� to Rs. 216/- on 4th December 95�. There were also allegation of price rigging in the scrip. SEBI conducted investigations into this matter. 
 
Investigations revealed that Shri Avinash Magan, M/s. Yogi Leasing & Finance Ltd., Shri Babu Lal Agarwal had dealt in the said scrip with an intention to manipulate the prices of the said shares. These persons/entities were responsible for creating a false market and artificial rise in the price of the scrip. It was also found during investigations that the scrip attracted volumes in the range of 17 to 23 lakh shares per day, which was much in excess of total number of equity shares of the company (10,00,000 shares). Shri Ashwin L. Shah, Chairman, of the company was also found to be involved in this price manipulation. 
 
Notices were issued to the aforementioned persons/entities to show cause as to why appropriate directions prohibiting them from further dealing in the securities market should not be issued against them 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. After carefully examining the records and other relevant material, SEBI passed an order prohibiting Shri Avinash Magan, M/s. Yogi Leasing & Finance Ltd., Shri Babu Lal Agarwal and Shri Ashwin L Shah, Chairman, Arpan Leasing & Co. Ltd., from dealing in securities in any manner for a period of five years w.e.f. January 04, 1999.