November 30, 2005
PR No. 153/2005

Order in the matter of (1) Nageshwar Investment Ltd., (2) Adinath Bio-Labs Ltd., (3) Globe Stocks & Securities Ltd., (4) Goenka Business & Finance Ltd. and (5) Coronet Industries Ltd.

SEBI vide order dated November 30, 2005 has issued the following directions in the matter of (1) Nageshwar Investment Ltd., (2) Adinath Bio-Labs Ltd., (3) Globe Stocks & Securities Ltd., (4) Goenka Business & Finance Ltd. and (5) Coronet Industries Ltd.

1. The following twelve 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:
    

   1. Basant Periwal & Co.
       

   2. Binoy Poddar
       

   3. P K Agarwal & Co.
       

   4. Pramod K Kothari
       

   5. Purshottam Lal Kejdiwal
       

   6. Santosh K Kejriwal Securities (P) Ltd.
       

   7. Dinesh Kumar Lodha
       

   8. Ashish Stock Broking
       

   9. Sunil Kedia
       

   10. Murari Lal Goenka
        

   11. Shyam Lal Sultania
        

   12. Ahilya Commercial Pvt. Ltd.
        

2. In respect of Shyam Lal Sultania and Ahilya Commercial Pvt. Ltd., brokers of CSE (mentioned at Sr. No. 11 & 12) against whom another order dated September 29, 2005 has been passed whereby they were directed not to buy, sell or deal in securities in any manner, either directly or indirectly, both the orders will run concurrently, till further directions in them.
    

3. The trading in the following companies shall remain suspended till further directions issued in this regard.
    

   1. Nageshwar Investment Ltd.
       

   2. Adinath Bio-labs Ltd.
       

   3. Globe Stocks & Securities Ltd.
       

   4. Goenka Business & Finance Ltd.
       

   5. Coronet Industries Ltd.

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 investigation, that the five companies, all of which are listed in CSE, that the brokers have followed a common modus operandi of artificially inflating 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 lack lustre 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

November 30, 2005

For full copy of order against ADINATH BIO-LABS LTD., click here.

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

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

For full copy of order against B.K.PERIWAL, click here.

For full copy of order against BASANT PERIWAL & CO., click here.

For full copy of order against BINOY PODDAR, click here.

For full copy of order against BINOY PODDAR,M/S, click here.

For full copy of order against CORONET INDUSTRIES LTD., click here.

For full copy of order against DINESH KUMAR LODHA, click here.

For full copy of order against DINESH KUMAR LODHA,M/S, click here.

For full copy of order against GLOBE STOCKS & SECURITIES LTD., click here.

For full copy of order against GOENKA BUSINESS & FINANCE LTD., click here.

For full copy of order against MURARI LAL GOENKA, click here.

For full copy of order against MURARI LAL GOENKA,M/S, click here.

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

For full copy of order against P.K.AGARWAL & CO., click here.

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

For full copy of order against PRAMOD KUMAR AGARWAL, click here.

For full copy of order against PRAMOD KUMAR KOTHARI, click here.

For full copy of order against PRAMOD KUMAR KOTHARI,M/S, click here.

For full copy of order against PURSHOTTAM LAL KEJRIWAL, click here.

For full copy of order against PURSHOTTAM LAL KEJRIWAL,M/S, click here.

For full copy of order against SANTOSH KUMAR KEJRIWAL SECURITIES PVT.LTD., click here.

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

For full copy of order against SUNIL KEDIA, click here.

For full copy of order against SUNIL KEDIA,M/S, click here.