Investigation, Enforcement and Surveillance Dept.

M/s. Hindustan Finstock Ltd. (HFL) came out with its maiden public issue for 27,00,000 equity shares of Rs.10 each during April, 1995. An investigation was conducted by SEBI into the affairs of HFL as complaints were received regarding manipulation in the scrip of HFL. Investigations prima facie revealed that a majority of floating stock of HFL was cornered by the promoters of the company immediately after the closure of public issue. The promoters subsequently handed over the stock to their associates namely, Shri. Shailesh Thakkar, Shri. Kayoor Bakshi, M/s. Shamal Stock Holding Pvt. Ltd. and M/s. Dynamic Electricals Pvt. Ltd. who in turn dealt in the scrip of HFL with an intention to create a false market and manipulate the price of the scrip. Pursuant to investigation a show cause notice was issued to Shri. Shailesh Thakkar, Shri. Kayoor Bakshi, M/s. Shamal Stock Holding Pvt. Ltd. and M/s. Dynamic Electricals Pvt. Ltd. and an opportunity for personal hearing was granted. Based on oral submissions, documents and evidence on record, SEBI has issued directions against the aforesaid entities debarring them from dealing in securities for a period of one year.