September 29, 2005
PR No. 128/2005

Order in the matter of (1) Prime Capital Market Ltd., (2) Subh Laxmi Projects Ltd., (3) Global Capital Market Ltd., (4) Bankam Investments Ltd., (5) S. T. Services Ltd. and (6) Amluckie Investment Co. Ltd.

SEBI vide order dated September 29, 2005 has issued the following directions in the matter of (1) Prime Capital Market Ltd., (2) Subh Laxmi Projects Ltd., (3) Global Capital Market Ltd., (4) Bankam Investments Ltd., (5) S. T. Services Ltd. and (6) Amluckie Investment Co. Ltd.:

1. The following eleven stock brokers of Calcutta Stock Exchange (CSE) shall not buy, sell or deal in securities, in any manner, either directly or indirectly, till further directions in this regard:
   
   (a) Sanju Kabra
   
   (b) Shivam Stock Broking Pvt. Ltd.
   
   (c) D B & Co.
   
   (d) Rajendra Prasad Shah
   
   (e) Badri Prasad & Sons
   
   (f) M Bhiwaniwala & Co.
   
   (g) Ram Mohan Sarda
   
   (h) A V Shares & Stock Brokers Pvt. Ltd.
   
   (i) Shyam Lal Sultania
   
   (j) Ahilya Commercial Pvt. Ltd.
   
   (k) S Jhunjhunwala & Co.

2. The trading in the following companies shall remain suspended till further directions issued in this regard.
   
   a) Prime Capital Market Ltd.
   
   b) Subh Laxmi Projects Ltd.
   
   c) Global Capital Market Ltd.
   
   d) Bankam Investments Ltd.
   
   e) S. T. Services Ltd.
   
   f) Amluckie Investment Co.

The above directions shall take effect immediately and shall be in force until further orders.

The order has been passed by Shri G Anantharaman, Whole Time Member, SEBI in the following context: 

It is evident from the findings of the preliminary inquiry, that the six companies, all of which are listed in CSE, and one of which is listed also in BSE, and another listed additionally in Jaipur and Ahmedabad Stock Exchanges the brokers have followed a common modus operandi of artificially jacking up the price and creating false volumes through continuous self deals executed on the same terminal and cross deals amongst themselves, thereby not only enriching themselves but also aiding and abetting the process of legitimizing the gains. Besides the companies themselves have recorded poor or negative financial performance and have not bothered to file up to date financial statements with CSE. Such acts by the brokers pose a serious risk to the stability and settlement system of the stock exchange besides raising the spectre that innocent investors may get drawn by the artificial trading volumes generated by these brokers and may in the process be beguiled into investing in the shares of these fundamentally weak companies at unjustifiable market prices, only to be left adrift. 

Their dealings also establishes a prima facie case of violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 and Regulation 7 of SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 read with code of conduct as specified in Scheduled II of the said Regulations.
 
 
Mumbai

September 29, 2005

For full copy of order against A.V.SHARES & STOCK BROKING PVT.LTD., click here.

For full copy of order against AHILYA COMMERCIAL PVT.LTD., click here.

For full copy of order against AMLUCKIE INVESTMENT CO.LTD., click here.

For full copy of order against BADRI PRASAD & SONS, click here.

For full copy of order against BANKAM INVESTMENT LTD., click here.

For full copy of order against D.B.& CO., click here.

For full copy of order against GLOBAL CAPITAL MARKETS LTD., click here.

For full copy of order against M.BHIWANIWALA & CO., click here.

For full copy of order against PAWAN KUMAR SULTANIA, click here.

For full copy of order against PRIME CAPITAL MARKET LTD., click here.

For full copy of order against RAJENDRA PRASAD SHAH, click here.

For full copy of order against RAJENDRA PRASAD SHAH,M/S, click here.

For full copy of order against RAM MOHAN SARDA, click here.

For full copy of order against RAM MOHAN SARDA,M/S, click here.

For full copy of order against S.JHUNJHUNWALA & CO., click here.

For full copy of order against S.T.SERVICES LTD., click here.

For full copy of order against SANJU KABRA, click here.

For full copy of order against SANJU KABRA,M/S, click here.

For full copy of order against SHIVAM STOCK BROKING PVT.LTD., click here.

For full copy of order against SHYAMLAL SULTANIA,M/S, click here.

For full copy of order against SUBH LAXMI PROJECTS LTD., click here.