May 09, 2007
PR No. 162/2007
IPO Investigations � Sugandh Estates & Investments Pvt. Ltd.(SEIPL), Parag Jhaveri and Kamal Jhaveri
Shri G. Anantharaman, Whole Time Member, SEBI has issued a post-decisional order dated May 9, 2007 in the matter of IPO Investigations confirming the ad interim order dated April 27, 2006 against Shri Kamal P Jhaveri, Shri Parag P. Jhaveri and Sugandh Estate and Investments Pvt. Ltd.
In the matter of investigations into the irregularities relating to IPOs that came during 2003-2005, SEBI, vide an ad interim ex parte order dated April 27, 2006, inter alia, directed three key operators namely Sugandh Estate and Investments Pvt. Ltd. (SEIPL), Shri Kamal P.Jhaveri and Shri Parag P.Jhaveri (hereinafter collectively referred to as the Jhaveri group) not to buy, sell or deal in the securities market including in IPO�s, directly or indirectly till further directions. The above directions were issued in view of their prima facie role in cornering of IPO shares through opening of thousands of afferent demat accounts in fictitious / benami names, making applications in the retail category in the names of the fictitious / benami names and cornering of retail portion of IPO shares.
Subsequent to the issue of ex-parte interim directions, written submissions were received from the concerned entities and opportunities of oral hearings were granted to the parties. After considering the oral and written submissions of the parties and the material on record, the Whole Time Member, SEBI issued post-decisional order confirming the directions issued vide the ad interim order dated April 27, 2006.
May 9, 2007