PRESS RELEASE - SEBI
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January 24, 2006
PR No.
46/2006
Order in the matter of Galaxy Broking Limited, Member, BSE
(SEBI Registration No. INB010882739)
Securities and Exchange Board of India (SEBI) vide order dated January 24, 2006 has issued the following directions in the matter of Galaxy Broking Limited.
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Suspended the certificate of registration of M/s. Galaxy Broking Limited, Member, BSE (SEBI Registration No. INB0108827390) and directed not to buy, sell or deal in securities, in any manner, either directly or indirectly, till further directions in this regard.
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Clients of Galaxy, listed in the following table are directed not to buy, sell or deal in securities of companies indicated against their names in Table, directly or indirectly, till further directions in this regard.
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S.
No.
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Name
of the Client
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Name
of the company
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Anil
Gandhi Group
(Anil Gandhi, Priti Anil
Gandhi, Amrut
Securities, Deepak Ashar,
Manish Ashar, Chintamani
Share and Broking Ltd., Sudha
Amrutlal Gandhi, Pooja
Anil Gandhi, Amrutlal Jivandas
Gandhi,)
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Baffin
Engineering
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-
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Anil
Gandhi Group
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Global
Boards Limited
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-
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Anil
Gandhi Group
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Shukun
Construction
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-
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Anil
Gandhi Group
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Birla
Power
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Chirag
Shah
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-
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Girdharbhai
J Vagadia
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Fast
Track Entertainment
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Rite
deal Trading
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-
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Ganesh
Raut
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Mega
Corporation
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Anil
Gandhi Group
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Vintel
Securities
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-
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Girdharbhai
J. Vagadia
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Prraneta
Industries
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-
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Stardom
Trading
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Millennium
Cybertech
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Anil
Gandhi Group
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Vintel
Securities
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IFSL
Group(IFSL, Cardiod
Marketing,
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-
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Suresh
Pukhraj Jain
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Karuna
Cables
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IFSL
Group
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Vintel
Securities
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-
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Anil
Gandhi Group
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Kirti
Finvest
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Darshit
Patel
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Chirag
Shah
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-
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Chirag
Shah
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Dolphin
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Anil
Gandhi Group
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-
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Anil
Gandhi Group
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Swan
Mills
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Chirag
Shah
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-
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DilipKumar
Adukia
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IFSL
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Anil
Gandhi Group
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-
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Chirag
Shah
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IQMS
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Darshit
Patel
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Anil
Gandhi Group
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-
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SureshKumar
P.Jain
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Robinson
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IFSL
Group
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Anil
Gandhi Group
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-
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Anil
Gandhi Group
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Wellworth
overseas
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Chirag
Shah
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Darshit
Patel
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-
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Troop
Track Electrodes
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Gangotri
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-
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Chirag
Shah
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Intradeco
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Anil
Gandhi Group
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Darshit
Patel
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-
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Rational
Finvest
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Landmark
Leisure
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The Depositories shall not give effect to any transfer of shares of the companies listed as per Table above, lying in the beneficial owner accounts of clients mentioned in table
The order has been passed by Shri G.Anantharaman, Whole Time Member, SEBI in the following context:
Galaxy has played a major role in generating artificial volumes and rise in the prices of large number of penny stocks. The burgeoning volumes created through the artifice of a web of off market/market transfers and trading between a common set of inter-connected clients, some of whom have also been funded by allowing them to maintain a large debit balances, and the tell-tale strands of inter-locking deals intermediated by the broker speak volumes about the penny stock manipulation in the most brazen way, thereby vitiating the market. Generation of this large volume, through artificial demand and supply has also helped in ramping up prices of companies which otherwise had lackluster performance which did not justify the spurt in share prices. The promoters of these companies offloaded their shareholding at higher prices, a fact which has also been brought out in the order of SEBI in the cases of Mega Corporation and Karuna Cables. It was also seen that promoters /directors were closely associated with some of the companies in which Galaxy, its directors and other inter-connected clients traded. Most of the inter-connected clients were also appeared in the recent orders of SEBI.
The order set details which highlight the most unedifying role of Galaxy in creating false market in the shares of penny stocks and inveigling investors to trade in these stocks.
In doing so, Galaxy has prima-facie violated the following:-
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Regulation 4 (2) (a) and (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003.
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Regulation 18B, A (2), (3), (4), and (5), B (6) of Code of conduct prescribed as per Regulation 7of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992.
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SEBI Circular No.SEBI/MRD/SE/Cir-15/2004 dated March 19, 2004 read with SEBI/MRD/SE/SU/Cir-16/04 dated March 31, 2004.
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SEBI Circular No. SEBI/MRD/SE/Cir- 33/2003/27/08 dated August 27, 2003.
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SEBI Circular SMDRP/POLICY/CIR-49/2001 dated October 22, 2001.
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SEBI Circular SEBI/MIRSD/DPS-1/Cir-31/2004 dated August 26, 2004.
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Clause 5 of SEBI (Securities Lending Scheme) 1997.
Mumbai
January 24, 2006
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For full copy of order against AMRUT SECURITIES LTD., click here.
For full copy of order against AMRUTLAL JIVANDAS GANDHI, click here.
For full copy of order against ANIL AMRUITLAL GANDHI, click here.
For full copy of order against CARDIOD MARKETING PVT.LTD., click here.
For full copy of order against CHINTAMANI SHARES & BROKING LTD., click here.
For full copy of order against CHIRAG VADILAL SHAH, click here.
For full copy of order against DARSHIT PATEL, click here.
For full copy of order against DEEPAK ASHAR, click here.
For full copy of order against DILIP KUMAR ADUKIA, click here.
For full copy of order against GALAXY BROKING LTD., click here.
For full copy of order against GIRDHARBHAI JAYRAMBHAI VAGADIYA, click here.
For full copy of order against IFSL LTD., click here.
For full copy of order against MANISH K.ASHAR, click here.
For full copy of order against POOJA ANIL GANDHI, click here.
For full copy of order against PRITI ANIL GANDHI, click here.
For full copy of order against RATIONAL FINVEST PVT.LTD., click here.
For full copy of order against SUDHABEN AMRUTLAL GANDHI, click here.
For full copy of order against SURESH PUKHRAJ JAIN, click here.
For full copy of order against TROOP TRACK ELECTRODES, click here.
For full copy of order against VINTEL SECURITIES PVT.LTD., click here.
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