PRESS RELEASE - SEBI

April 18, 2013
PR No. 043/2013


Order in the matter of dealing in the shares of P.M. Telelinnks Ltd. and 8K Miles Software Solutions Ltd. 

Shri Rajeev Kumar Agarwal, Whole Time Member, SEBI, passed an ad interim ex -parte order dated April 18, 2013 restraining Jipal Pineshkumar Shah, Saurin Pravinbhai Shah, Bhavini Vijaykumar Shah, Vijay Babulal Shah,
Jagdish Ramanlal Patel, Pankaj N Patel, Ronak P. Patel, Urmila G. Patel, Hema G. Patel, Daivik Jatinbhai Shah (related/connected entities) and the promoters of P.M. Telelinnks Ltd. (PMTL) - Gulab Pukhraj Surana, Dipin Surana
and Ravi Pukhraj Surana, from accessing securities market and prohibiting them from buying, selling or dealing in securities in any manner whatsoever, till further directions in the matter of dealing in the scrip of P.M. Telelinnks Ltd. (PMTL) and 8K Miles Software Solutions Ltd. (8KMILES).
 
SEBI had, suo moto, carried out an examination in the scrip of PMTL in view of surveillance alerts regarding variation in price.
 
During examination of the said scrip, it was observed that;

  1. The promoters of PMTL transferred funds to related/connected entities. The related/connected entities were observed to be trading in the scrip PMTL immediately after credit of funds in their accounts.
     
  2. During the period August 1, 2011 to May 23, 2012, the aforesaid entities created artificial volumes in the scrip of PMTL through substantial trading volumes (40.75% of the gross market volume), trading amongst themselves (43% of their traded volume); executing synchronised trades (24.42% of their traded volume) and placed orders at a price higher than the last traded price (LTP), thereby contributing to the rise in price from ` 39.95/- per share to ` 182.8 per share. Once the price of the scrip reached its peak, the aforesaid entities offloaded their shares (27.34% of the gross market volume), thereby resulting in fall in the price of the scrip.
     
  3. A similar modus operandi by the aforesaid entities was observed in the scrip of 8K Miles Software Solutions Ltd. (8KMILES) during the period January 2, 2012 to June 15, 2012.

The above examination, prima facie, shows that the aforesaid connected entities indulged in trading in an artificial, manipulative and unfair manner. Further, the promoters/Managing Director of PMTL were found to be acting in
concert with the related/connected entities of Shah/Patel Group under a premeditated plan or strategy of 'pump and dump' as understood in the market parlance. Thus, the aforesaid entities have, prima facie, violated section 12A of the Securities and Exchange Board of India Act, 1992 and regulations 3 and 4 of the Securities and Exchange Board of India (Prohibition of the Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003.
 
 
  
Mumbai
 
April 18, 2013

For full copy of order against BHAVINI VIJAYKUMAR SHAH, click here.

For full copy of order against DAIVIK JATINBHAI SHAH, click here.

For full copy of order against DIPIN SURANA, click here.

For full copy of order against GULAB CHAND PUKHRAJ SURANA, click here.

For full copy of order against HEMA GOVINDBHAI PATEL, click here.

For full copy of order against JAGDISH RAMANLAL PATEL, click here.

For full copy of order against JIPAL PINESHKUMAR SHAH, click here.

For full copy of order against PANKAJ N.PATEL, click here.

For full copy of order against RAVI PUKHRAJ SURANA, click here.

For full copy of order against RONAK P.PATEL, click here.

For full copy of order against SAURIN PRAVINBHAI SHAH, click here.

For full copy of order against URMILA G.PATEL, click here.

For full copy of order against VIJAY BABULAL SHAH, click here.