Press Release

1. Pursuant to the investigation on the unusual price movement accompanied by increased volume of trading in the shares of Shivalik Loha Mills Ltd. (SLML), an Enquiry Officer was appointed against M/s.Sunil Gupta and Co., Member, Ludhiana Stock Exchange (LSE) to enquire into his dealings in the shares of SLML.

2. The enquiry officer submitted his report dated 2.2.2000. He found that M/s.Sunil Gupta and Co. did not exercise due skill and diligence and indulged in manipulative transactions in violation of sub-clause (2) and (3) of Clause A of the Code of Conduct laid down in Schedule II of SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 and Bye-law 48(i) of LSE and Section 2(i) of the Securities Contracts (Regulation) Act, 1956.

3. Pursuant to the above, a show cause notice was issued to M/s.Sunil Gupta and Co., which was replied by it. A hearing was given before Chairman, SEBI. After taking into account the findings of the enquiry and the submissions of M/s.Sunil Gupta and Co., Chairman, SEBI passed an Order on 27.7.2002 suspending the registration of M/s.Sunil Gupta and Co. (SEBI Registration No.INB120703815) for a period of six months with effect from 10th August, 2002.