Sebi files 10 cases in first quarter

MUMBAI, April 6: The Securities and Exchange Board of India (SEBI) filed criminal cases and launched prosecutions in 10 cases involving 67 persons/entities in the first quarter of 1998. Three cases of prosecutions have been launched under Section 24 of the SEBI Act, 1992, for violations of the Act and its regulations framed to promote orderly and healthy growth of the securities market and protect investors. Prosecutions were also launched for violation under Companies Act, 1956.

According to a SEBI statement, Avinash Magan and 16 other entities – Yogi Leasing and Finance Ltd, Mahadev Bio-Engineers, Well Wisher Traxin Pvt Ltd, Ankurita Tradefin, Dharmendra Pandya of D Pandya Investments, Ani Shroff of Laxmi Investments, Expert Technologies Pvt Ltd, Moods Delaers Pvt Ltd, Om Securities, Manoj Motta of Swastik Enterprises, Tushar Shah of Hi Tech Securities, R C Arora of Aee Bee Stocks, Laxmandas Arora of Aee Bee Investments, Par Securities, Apco pharma Ltd and Saurabh Vora of Agarwal Enterprises – colludedwith him in creating an artificial market and rigging the price of the shares of Napa Papers Ltd.

The share price rose from Rs 9.50 to Rs 70 in 17 trading days, in violation of Regulation 4 of the SEBI (prohibition of fraudulent and unfair trade practices relating to securities markets, regulations, 1995.

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SEBI said prosecutions were launched against Mihir Ghelani, Yogendra Ruparel and Dipak Dalal for rigging the price of the scrip of Kamakshi Housing Ltd, from Rs 24 to Rs 310 in 50 trading days, under the same Act.

Cases were also launched against Rushabh Securities Ltd, Ahmedabad, and its directors Hasmukh Ray Bhatt, D B Gandhi and P B Mehta. They had made a public offer to acquire shares of Rosemount Pharma Ltd, Ahmedabad. However, on receipt of the shares from the investors, they failed to make payment to all the investors, within the time specified.