September 16, 1999
PR No. 214/1999

Investigation, Enforcement & Surveillance Dept.

SEBI initiated investigations into the alleged price manipulation in the scrip of MKJ Developers Ltd., MKJ Enterprises Ltd. and Right Address Ltd. for the period January 05, 1998 to February 27, 1998 when price of the scrip had moved from Rs. 5/- to Rs. 60/- in all the three scrips. Investigations revealed that Shri Kanta Das, Sanjay Khemka and Sanjay Kumar Dutta were the only clients dealing in the scrip through Shri Ashok Kumar Kayan, Member, Calcutta Stock Exchange Association Ltd., in the trading period under investigation. All the three clients were family members or employees of the broker. They traded in the scrips in such a manner that none of them had any net settlement liability for the period under consideration. Therefore, it was concluded that circular trading was done by these clients with an intention to artificially jack up the prices of the scrips. Shri Ashok Kumar Kayan has already been suspended by SEBI for a period of three months. 
SEBI sent show cause notices to Sri Kanta Das, Sanjay Khemkha and Sanjay Kumar Dutta but no reply was received from them. They were also called for the personal hearing before the chairman but they did not avail the same. After considering the facts on records, SEBI has passed orders restraining them from dealing in securities in any manner for a period of one year.