April 08, 1999
PR No. 89/1999


SEBI initiated investigations into the alleged price manipulation in the scrip of Kamakshi Housing and Finance Ltd. (KHFL) specially pertaining to the period December 04, 1995 to February 28, 1996 when price of the scrip had moved from Rs. 24/- to Rs. 310/-. Investigations revealed that Mr. Dipak Dalal of M/s. Asian Finstock Ltd., Mr. Mihir Ghelani of Mohan Investment and Mr. Yogesh Ruparel of R. K. Investments had dealt in the said scrip with an intention to manipulate the prices of the said share. It was found that Mohan Investment and Asian Finstock Ltd. were related to each other and had cornered large quantity of shares through R. K. Investment, which caused an artificial spurt in the price of the scrip. Thus, 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 availed only by Mr. Yogesh Ruparel of R. K. Investments. After carefully examining the records and other relevant material, SEBI has passed an order prohibiting these entities from dealing in securities in any manner for a period of two years w.e.f. April 06, 1999.