January 24, 2006
PR No. 47/2006

Order in the matter of Millennium Cybertech Ltd.

Securities and Exchange Board of India (SEBI) vide order dated January 24, 2006 has issued the following directions in the matter of Millennium Cybertech Ltd.:

a)     That the company Millennium Cybertech Ltd. is hereby directed that it shall not issue any equity shares or any other instrument convertible into equity shares, in any manner, or shall not alter its capital structure in any manner, till further directions in this regard.

b)     That the promoters of the company Millennium Cybertech Ltd. viz, CornHill Trading Company Ltd., Cute Productions Pvt. Ltd. and Stardom Trading Company Pvt. Ltd. are hereby directed not to buy, sell or deal in securities of Millennium Cybertech Ltd. directly or indirectly, till further directions in this regard. 

c)      That the Private Corporate Bodies, who are the shareholders of the company Millennium Cybertech Ltd. viz, Ampu Traders Pvt. Ltd., Rajput Textiles Ltd., Jupiter Securities & Properties Pvt. Ltd. and Camcon Engineers Ltd. are hereby directed not to buy, sell or deal in securities of Millennium Cybertech Ltd. directly or indirectly, till further directions in this regard.

d)     The clients Amar Adhav, Umesh Choukekar, Deepak Todkar, Deepak Narvekar, New Leader Trading Co Pvt. Ltd., Fineline Mercantile Co. Pvt. Ltd., Rightstar Trading Co. Ltd., Santosh Pawar, Rajkishore Singh, Sharpline Trading co. Pvt. Ltd., Interlink Financial Services Ltd., Ritedeal Trading Co. Pvt. Ltd., Stockholm Mercantile Co. Pvt. Ltd., Sandeep Kadam and Jayesh Waghela, in any securities, directly or indirectly, till further directions in this regard.

e)     The clients - Shree Ambey Textiles Pvt. Ltd. and Goldcity Exports Pvt. Ltd. are hereby directed not to buy, sell or deal in securities of Millennium Cybertech Ltd. directly or indirectly, till further directions in this regard.

f)        The clients Harish Sujan, Ghanshyam Sujan, Neel Sujan, Ramsudhakaran Menon, Shantha Bai, Bernard D�Souza, Rajendra Adukia and Abhayraj Rampher Shukla are hereby directed not to buy sell or deal in securities of Millennium Cybertech Ltd. directly or indirectly, till further directions in this regard.

g)     That the stock brokers viz. Indiabulls Securities Ltd., Jaypee Capital Services Ltd., Fortis Securities Ltd., Vijay Bhagwandas and Company, Insight Share Brokers Pvt. Ltd. and Joindre Capital Services Ltd. are hereby directed not to buy, sell or deal in securities of Millennium Cybertech Ltd. directly or indirectly, for the entities mentioned under para (b), para (c), para (d), para (e) and para (f) till further directions in this regard.

h)      Further, a separate order has been issued against the stock broker Galaxy vide order no. WTM/GA/MIRSD/46/1/06 dated January 24, 2006 for the alleged involvement in penny stocks as a whole.

i)        The Depositories, NSDL and CDSL shall not give effect to any transfer of shares of Millennium Cybertech Ltd. lying in the beneficial owner accounts of the entities mentioned in para (b), para (c), para (d), para (e) and para (f) till further directions in this regard. All the above directions shall take effect immediately and shall be in force until further orders. 

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

Millennium is a small cap company whose financial performance has consistently been lacklustre through five quarters ended September 30, 2005. Its share price which was ruling around Rs. 18 and Rs. 23 during the period June 2004 to March 2005 suddenly rose at the level of Rs. 66 during the end of May 2005. The share price suddenly exhibited a spurt which took the price from around Rs. 65 to Rs. 240 between June 1, 2005 and September 30, 2005. The rise in the share price was also accompanied by an increase in the trading volumes. The share prices are currently hovering around Rs. 2.49 (face value of Re 1/-). The sudden transient spurt in the share price, without a backup of commensurate financial performance and absence of any positive corporate announcements makes the rise appear artificial.�
 
The promoters of the company have offloaded shares during the period of the price rise both through market as well as through a web of off market transactions in a cosy arrangement between a set of interconnected clients. All these clients have also appeared in the orders passed by SEBI in the case of IFSL Ltd, Mega Corporation Ltd. and Karuna Cables Ltd. bringing out their involvement in the trading in such scrips. Clearly there appears to be an elaborate and crafty scheme designed by a set of people, collectively and carefully masterminding the manipulation of shares of low cap companies at the cost of the lay investors. The artifice employed by the promoters in the case of Millennium Cybertech Ltd. appears to have been a standard one followed in the case of several small cap companies viz IFSL Ltd, Mega Corporation Ltd. and Karuna Cables Ltd. against which SEBI has already passed orders. It has all the ingredients of a penny stock manipulation.

 
 
Mumbai

January 24, 2006

For full copy of order against ABHAYRAJ RAMPHER SHUKLA, click here.

For full copy of order against AMAR YUVRAJ ADHAV, click here.

For full copy of order against AMPU TRADERS PVT.LTD., click here.

For full copy of order against BERNARD D’SOUZA, click here.

For full copy of order against CAMCON ENGINEERS LTD., click here.

For full copy of order against CORNHILL TRADING CO.PVT.LTD., click here.

For full copy of order against CUTE PRODUCTIONS PVT.LTD., click here.

For full copy of order against DEEPAK NARVEKAR, click here.

For full copy of order against DEEPAK TODKAR, click here.

For full copy of order against FINELINE MERCANTILE CO.PVT.LTD., click here.

For full copy of order against FORTIS SECURITIES LTD., click here.

For full copy of order against FORTIS SECURITIES LTD., click here.

For full copy of order against FORTIS SECURITIES LTD., click here.

For full copy of order against GHANSHYAM SUJAN, click here.

For full copy of order against GOLDCITY EXPORTS PVT.LTD., click here.

For full copy of order against HARISH SUJAN, click here.

For full copy of order against INDIABULLS SECURITIES LTD., click here.

For full copy of order against INDIABULLS SECURITIES LTD., click here.

For full copy of order against INSIGHT SHARE BROKERS PVT.LTD., click here.

For full copy of order against INSIGHT SHARE BROKERS PVT.LTD., click here.

For full copy of order against INTERLINK FINANCIAL SERVICES LTD., click here.

For full copy of order against JAYESH WAGHELA, click here.

For full copy of order against JAYPEE CAPITAL SERVICES LTD., click here.

For full copy of order against JAYPEE CAPITAL SERVICES LTD., click here.

For full copy of order against JAYPEE CAPITAL SERVICES LTD., click here.

For full copy of order against JAYPEE CAPITAL SERVICES LTD., click here.

For full copy of order against JOINDRE CAPITAL SERVICES LTD., click here.

For full copy of order against JOINDRE CAPITAL SERVICES LTD., click here.

For full copy of order against JOINDRE CAPITAL SERVICES LTD., click here.

For full copy of order against JOINDRE CAPITAL SERVICES LTD., click here.

For full copy of order against JOINDRE CAPITAL SERVICES LTD., click here.

For full copy of order against JOINDRE CAPITAL SERVICES LTD., click here.

For full copy of order against JOINDRE CAPITAL SERVICES LTD., click here.

For full copy of order against JUPITER SECURITIES & PROPERTIES PVT.LTD., click here.

For full copy of order against MILLENNIUM CYBERTECH LTD., click here.

For full copy of order against NEEL SUJAN, click here.

For full copy of order against NEWLEADER TRADING CO.PVT.LTD., click here.

For full copy of order against RAJ KISHOR SINGH, click here.

For full copy of order against RAJENDRA KUMAR ADUKIA, click here.

For full copy of order against RAJPUT TEXTILES PVT.LTD., click here.

For full copy of order against RAMASUDHAKARAN MENON, click here.

For full copy of order against RIGHTSTAR TRADING CO.PVT.LTD., click here.

For full copy of order against RITEDEAL TRADING CO.PVT.LTD., click here.

For full copy of order against SANDEEP BABAJI KADAM, click here.

For full copy of order against SANTOSH KRISHNA PAWAR, click here.

For full copy of order against SHANTHA BAI, click here.

For full copy of order against SHARPLINE TRADING CO.PVT.LTD., click here.

For full copy of order against SHREE AMBEY TEXTILES PVT.LTD., click here.

For full copy of order against STARDOM TRADING CO.PVT.LTD., click here.

For full copy of order against STOCKHOLM MERCANTILE CO.PVT.LTD., click here.

For full copy of order against UMESH B.CHOUKEKAR, click here.

For full copy of order against VIJAY BHAGWANDAS & CO., click here.