November 28, 2001
PR No. 204/2001
SECURITIES AND EXCHANGE BOARD OF INDIA
Investigations, Enforcement and Surveillance Department
Investigation was conducted by Securities and Exchange Board of India (SEBI) into the alleged manipulation of the price of the scrip of Barasia Holding & Trading Co. Ltd. (Barasia). The price of the scrip of Barasia moved from Rs.4.50/- in January 1997 to Rs.111/- in April 1998.
Investigation, inter-alia, revealed the following:
M/s.A A Parekh & Sons, member, BSE had dealt for a large number of clients during four settlements and all his deals were cross deals with an intention of creating a false market in terms of volumes. Some of these clients were found to be fictitious, as no proper client information was available with the member.
M/s Shreyas Securities, M/s Shivam Investments and M/s Salasar Securites Ltd., Sub-Brokers, had indirectly aided and abetted the promoters/ directors of the Company and the persons related/ associated with them to manipulate the price of the share.
The above said acts of the member are in violation of SEBI (Stock brokers & Sub brokers) Regulations, 1992 & SEBI (Prohibition of Fraudulent & Unfair Trade Practices relating to Securities Market) Regulations, 1995.
After completion of enquiry proceedings, show cause notices were issued and personal hearing before the Chairman was granted. After taking into consideration the submissions made in writing as well as during the course of personal hearing, findings of the enquiry officer, and other relevant material available on record, SEBI has issued warning to M/s A A Parekh & Sons, M/s Salasar Securites Ltd., M/s Shreyas Securities and M/s Shivam Investments. They were advised to be careful in future and any repetitions of such acts will be viewed seriously.