I. E. S.

SEBI initiated investigations into the alleged price manipulation in the scrip of Hindustan Finstock Ltd. Investigations revealed that Shri R. K. Patel had dealt in the said scrip with an intention to manipulate the prices of the said shares. Shri R. K. Patel was responsible for creating a false market and artificial rise in the price of the scrip. A notice was issued to him to show cause as to why appropriate directions prohibiting him 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. He was also given an opportunity to appear before the Chairman SEBI for personal hearing, which was not availed by him. After carefully examining the records and other relevant material, SEBI passed an order prohibiting Shri R. K. Patel from dealing in securities in any manner for a period of one-year w.e.f. March 01, 2002.