TMI Blog2015 (6) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... of Trading Group created the demand against the supply from the preferential allottees/pre IPO transferees. In the whole process, the principle of price discovery was kept aside and the market lost its purpose. It is evident from the above analysis that the Trading Group entities provided a hugely profitable exit to the preferential allottees and pre IPO transferees. Preferential allottees, pre IPO transferees acting in concert with Funding Group and Trading Group have used the stock exchange system to artificially increase volume and price of the scrip for making illegal gains and to convert ill-gotten gains into genuine one. However, the whole scheme could not have been possible without the involvement/ connivance of companies and their promoters and directors. The acts and omissions were prima facie for generating fictitious LTCG so as to convert unaccounted income of preferential allottees and pre-IPO transferees into accounted one with no payment of taxes as LTCG is tax exempt under section 10(38) of Income Tax Act, 1961. I prima facie find that the above modus operandi helped the concerned entities to not pay income tax on account of LTCG and helped them to show the sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and remedial action is required to be taken by way of ad interim ex -parte in order to protect the interests of investors and preserve the safety and integrity of the market. In order to protect the interest of the investors and the integrity of the securities market in exercise of the powers conferred upon in terms of section 19 read with section 11(1), section 11 (4) and section 11B of SEBI Act, 1992, pending inquiry/investigation and passing of final order in the matter, hereby restrain the concerned persons/entities from accessing the securities market and buying, selling or dealing in securities, either directly or indirectly, in any manner. The stock exchanges and the Depositories are directed to ensure that all the above directions are strictly enforced. - WTM/RKA/ISD/54/2015 - - - Dated:- 29-6-2015 - Rajeev Kumar Agarwal, Whole Time Member Ex-Parte Ad-Interim Order 1. Eco Friendly Food Processing Park Limited (hereinafter referred to as Eco ), Esteem Bio Organic Food Processing Limited (hereinafter referred to as Esteem ), Channel Nine Entertainment Limited (hereinafter referred to as CNE ) and HPC Biosciences Limited (hereinafter referred to as HPC ) [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 16.15 to ₹ 525 ₹ 26.50 to ₹ 861.45 300 to 858000 3 CNE March 12, 2013 to December 31, 2014 ₹ 17.60 to ₹ 525 ₹ 26.25 to ₹ 782.45 500 to 204000 4 HPC March 19, 2013 to December 31, 2014 ₹ 39.10 to ₹ 735.90 ₹ 39.10 to ₹ 735.90 100 to 259200 5. The graphical representation of the respective price of all the scrips adjusted to rights issue/volume movement is as under: - 6. On analysis of financial statements of these companies it was noted that the Profit After Tax ( PAT ) and Earning price Per Share ( EPS ) of these companies had been consistently decreasing from financial year ( FY ) 2012-13 onwards i.e. the period of sharp price rise in the aforesaid scrips. The PAT and EPS of these companies from F.Y. 2010-11 onwards is given in the table below:- Table 2: Financial Statement Analysis Scrip name Eco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies who were issued majority of shares in the said preferential allotment by HPC. 10. Further, immediately after issuing shares on preferential basis, Eco, Esteem and CNE issued bonus shares in the ratio of 1:3 and HPC issued bonus shares in the ratio of 1:1. Consequent to the preferential allotments and bonus issues, the share capital of these companies increased manifold as detailed in the following table: Table 3: Equity Share Capital History Scrip Name No. of Shares as on 31/12/2010 No. of pref. allottees Pref. allotment (no. of shares) Bonus issue to pref. allottees (no. of shares) Share Capital after Bonus issue Increase in Share Capital Eco 50,000 51 16,70,500 50,11,500 68,82,000 137 Times Esteem 50,000 52 25,50,000 76,50,000 1,04,00,000 208 Times CNE 4,67,100 101 22,43, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erees . 13. In terms of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (hereinafter referred to as ICDR Regulations ), the pre-IPO holdings of promoters of all the issuer companies were locked-in for a period of three years and that of persons other than promoters were locked-in for a period of one year from the date of allotment in respective IPO. 14. It was observed that 30,24,000 shares were allotted to 295 entities in the IPO of Eco, 45,18,000 shares were allotted to 471 entities in the IPO of Esteem, 46,86,000 shares were allotted to 321 entities in the IPO of CNE and 45,60,000 shares were allotted to 541 entities in the IPO of HPC. It has been observed during preliminary inquiry that a set of common entities were funding the IPO of all the aforesaid companies either through directly transferring the amount in the escrow account of the companies on behalf of certain IPO allottees or by transferring the amount to the concerned IPO Allottees' bank accounts, who, in turn, applied for the shares in IPO. Based on Ministry of Corporate Affairs ( MCA ) website, bank statement analysis and KYCs of all the entities who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 Madhuker Dubey through his proprietary firms Alliance Traders, Magnum Industrial Corporation, A One Furniture and NV Sales Corporation AIJPD7329J Account No. 013683900002242, 013683900002209, 013683900002266 and 013683900002171 With Yes Bank Mr. Madhuker Dubey has fund transactions with AMS Powertronic Pvt Ltd, Core Capital Services Private Limited and Aavia Buildtech Private Limited. 8 Ram Prakash through his Proprietary firms Aggrawal Traders and Khan Enterprise AXFPR4439L Account No. 211150050800213 and 211150050800272 with Tamilnad Mercantile Bank. Ram Prakash is one of the directors of Aavia Builtech Private Limited. Further, Ram Prakash and Sumit Kumar share common Mobile No. 8527896710 registered with the broker 'Century Finvest Private Limited'. Ram Prakash received funds in the bank account of his proprietary firm, Aggarwal Traders, from Shiv Traders, Proprietary Firm of Mr. Prakash Gupta, which he used for funding 6 entities for subscribing to the IPO of Eco. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 58.5 234000 39 15 60000 10 89.6 256000 27 Sumit Kumar * 76.5 306000 21 0 0 0 30 120000 20 1.4 4000 1 Mayfair Infosolutions Pvt Ltd 0 0 0 15 60000 10 0 0 0 0 0 0 Ram Prakash 57 228000 38 28.5 114000 19 0 0 0 0 0 0 Shiv Traders 0 0 0 0 0 0 0 0 0 137.2 392000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.6 1 Issue Expenses 0.6 0.7 0.57 0.8 Setting up of Shade Net Cultivation facility - 3.8 - - Procurement of farm tools and equipments - 0.3 - 0.38 To finance the estimated expenditure of production of 2 films - - 7 - Strengthening Distribution operations - - 3.5 - Development of Green House cultivation - - - 3.27 Strengthen Supply Chain Management - - - 2.5 Total 8.05 11.25 11.67 15.85 18. It was noted that Eco in its ICICI Bank account No 663005119443, received ₹ 7,30,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10,000,000 10 All time buildtech Pvt Ltd 10,200,000 11 A R ENTERPRISES * 10,000,000 12 Kirti Advertisement Private Limited 10,000,000 13 Mammon Concast Pvt Ltd 10,000,000 14 N V Sales Corporation * 10,000,000 15 NISHA TRADERS * 10,000,000 16 Pawanputra Hotels Resorts Pvt. Ltd 10,000,000 17 Mefcon Agro industries Pvt. Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Moongipa Commodities 2,500,000 36 Jindal Infrastructure 2,000,000 37 Avisha Credit Capital Ltd * 15,50,000 1,600,000 38 Amit Jain 1,500,000 39 Farhat U Nisa 1,500,000 40 Agi Hospitality 1,000,000 41 INNTAL TRADING PV 1,000,000 42 Mehnaz Faizan 1,000,000 43 Nitin Gupta HUF 1,000,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of legal provisions. In this case, the return of IPO proceeds to financers of the allottees does not appear to be for any legally authorised purpose. Further, the said companies did not make any disclosure under clause 46 (a) read with (c) of SME Listing Agreement indicating such deviation in the use of IPO proceeds. 25. It was observed that during the period when the pre -IPO shares were under lock-in, the volume in the scrips was very low, but the price of all the scrips increased manifold. It was also observed that after the release of lock-in, there was substantial increase in traded volume and price of the scrips. As mentioned above, all these companies had poor fundamentals. It was further noted that none of these companies had made any announcement regarding their business or any other corporate action, which could impact the price of the scrips in the manner as observed hereinabove. Thus, the sharp rise in the price of these scrips during the examination period was not supported by fundamentals or any other genuine factor. The summary of average traded volume and astronomical price rise in the scrips during the relevant period is given in the following tables: Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Group S. No. PAN Name Basis of relationship 1 AAACC2840D Core Capital Services Limited As per the KYC received from trading member, Share India Securities Ltd. for Core Capital Services Ltd., directors are Satendra Kumar and Sumit Kumar. 2 AXFPR4439L Ramprakash As per UCC database updated by trading member, Century Finvest Pvt. Ltd. (6339), Ramprakash has common phone no. with Sumit Kumar viz. 8527896710. Further, as per MCA website, Ramprakash is a director in Aavia Buildtech Pvt. Ltd. and Aavia Softech Pvt. Ltd 3 AAKCA4090M Aavia Buildtech Private Limited As per MCA Database, Aavia Softech Pvt. Limited is connected with Aavia Buildtech Pvt. Ltd. on the basis of common director Kamal Singhal (Din NO. 5231916) RamPrakash (5231919). Ramprakash (AXFPR4439L) and Ramprakash ( Din No. 5231919) have common address i.e. 290B, JATWARA, SIHANIGATE, GHAZIABAD, 201001, Uttar Pradesh, INDIA 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CA0771D Ahuja Metalloys Private Limited 12 AABCL3306N Lunar Builders Pvt. Ltd. 13 AAFCM1482Q Master Piece Infocom Pvt. Ltd. 14 AATCS2129L Sure Portfolio Services Private Limited The director of the company has common address with Amit Saxena 15 AAGCR2643P River High Right Share Brokers Private Limited AS per MCA database, Murlidhargiri, River High Trucklink have common director i.e. Bablu (Din No. 5217790) and Yogesh Chand (Din No. 5217849). On analysis of Axis Bank A/c Statement of River High Share Brokers Pvt Ltd having A/c no. 913020010759447 has transferred funds to Amit Kumar Saxena 16 AAICM3230H Murlidhargiri Trading Pvt. Ltd. 17 AAECT4670L Trucklink Vinmay Trading Private Limited 18 AADCC2898Q Century Buildmart Pvt. Ltd. As per KYC, Century Buildmart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l investors and major buying volume was created on account of trades of these connected entities. Similairily, after release of lock-in on pre-IPO shares these connected entities had further pushed up the prices of the said scrips through positive contribution to the LTP on several instances and also contributed substantially to the traded volumes in all these scrips through their purchases from the preferential allottees and pre-IPO transferees. The Trading group had contributed to the positive LTP of 65.29% in Eco, 58.8% in Esteem, 19.08% in CNE and 28.65% in HPC as described in the following table: Table 12: Positive LTP contribution by Trading Group PAN Name Eco Eco Eco Eco Rs. Instances Rs. Instances Rs. Instances Rs. Instances AABCL3306N Lunar Builders Pvt. Ltd. 32.2 3 11.45 6 46.15 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 99.35 34 41.05 17 39.25 8 AAFCM1482Q Master Piece Infocom Pvt. Ltd. 0 0 29.35 4 1.55 4 103.1 22 AAKCA4090M Aavia Buildtech Private Limited 2.8 1 6.9 2 0 0 0.1 1 AEKPK6751Q Santosh Kumar 12.95 9 41.65 16 0.6 1 0 0 AXFPR4439L Ramprakash 1.5 2 0.85 3 0 0 18 3 AAFCM3345L Mahashiv Metal And Alloys Pvt Ltd 0 0 22.55 13 4.15 4 15.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Market Total 1123.8 516 1116.55 522 1770.6 677 6128.15 1285 Contribution in % 65.29 66.47 58.8 68.39 19.08 31.61 28.65 30.35 28. The aforesaid pattern of trading of connected entities by placing buy orders consistently and repeatedly in four scrips above LTP indicate the design to manipulate the price of the scrips. 29. It was further observed that after release of lock-in on pre -IPO shares, entities of Trading group had bought substantial shares of the said companies from the preferential allottees and pre- IPO transferees. A snapshot of such trading is as following:- Table 13: - Trading by entities of Trading Group, Preferential allottees and pre IPO transferees. Scrip Name Eco Esteem CNE HPC No. of Shares sold by Preferential Allottees (A) 14,77,200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PO transferees made a collective profit of ₹ 87.23 crore on a collective investment of ₹ 0.49 Crore, a whopping return of approximately 17,566%. Also in the scrip of CNE, 75 preferential allottees made a collective profit of ₹ 103.93 crore on a collective investment of ₹ 0.62 Crore, a whopping return of approximately 16,713%. It is noteworthy that the aforesaid returns by the preferential allottees and the pre-IPO transferees were made only within a period of 20-24 months (including the lock in period of the shares allotted in the preferential allotment) and the profits were made in scrips where not only the fundamentals/financials of the companies do not justify the substantial price rise but also the price was increased to unrealistic levels by manipulative trading by the Trading Group. 32. Further, on analysis of bank statements of few entities belonging to Trading Group it was noted that bank accounts of these entities had substantial inflow of funds from various sources and the funds received were immediately transferred to their trading member towards purchase of shares. Illustrations of such receipt of funds by two of the major exit providers from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 1 crore or more in a scrip were shortlisted. Accordingly, a set of 186 such entities (hereinafter referred to as shortlisted Group ), were identified. The particulars of members of Shortlisted Group are given in the following table: Table 14: Members of Shortlisted Group S. No. PAN Name Basis of relationship 1 AAAHO4138H Prakash Agarwal Om The entity is Pre IPO Transferee in the scrip of Eco 2 AAAPJ3918J Sangeeta Devi The entity is Preferential Allottee in the scrip of HPC 3 AAAPN2282K Sandeep Narang The entity is Preferential Allottee in the scrip of Eco 4 AABPA7646R Ahmad Sadat The entity is Preferential Allottee in the scrip of Eco 5 AABPI1183M Seemeen Ikram The entity is Pre IPO Transferee in the scrip of Esteem 6 AACCM044 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entity is Preferential Allottee in the scrip of CNE 22 AAGPB1427L V Balsubramaniam The entity is Preferential Allottee in the scrip of CNE 23 AAGPJ0443E Rajesh Jain The entity is Preferential Allottee in the scrip of Eco 24 AAGPK0723L Sanjay Kariwala The entity is Preferential Allottee in the scrip of CNE 25 AAHPG1456D Sanjeev Gupta The entity is Pre IPO Transferee in the scrip of HPC 26 AAHPG5906C Tarsem Chand Gupta The entity is Preferential Allottee in the scrip of Esteem 27 AAHPG5907D Neelam Gupta The entity is Preferential Allottee in the scrip of Esteem 28 AAHPG8607Q Vikas Gupta The entity is Pre IPO Transferee in the scrip of HPC 29 AAHPR9561N Urmil Rathi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AMPG7571Q Ram Avtar Gupta The entity is Preferential Allottee in the scrip of Esteem 46 AAMPM2657F Riaz Munshi The entity is Preferential Allottee in the scrip of Esteem 47 AANPJ1166B Sandeep Jain The entity is Pre IPO Transferee in the scrip of Esteem 48 AAOPA4653R Satya Aggarwal The entity is Preferential Allottee in the scrip of HPC 49 AAOPA4654J Rajan Aggarwal The entity is Preferential Allottee in the scrip of HPC 50 AAOPA4655K Kamla Aggarwal The entity is Preferential Allottee in the scrip of HPC 51 AAOPA4656L Rama Aggarwal The entity is Pre IPO Transferee in the scrip of Eco and Preferential Allottee in HPC 52 AAPPG2434D Satinder Paul Gupta The entity is Preferential Allottee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reena Kumari The entity is Pre IPO Transferee in the scrip of HPC 69 ABFPK4763L Ajay Kumar The entity is Pre IPO Transferee in the scrip of HPC 70 ABGPS0921H Rajan Sahni The entity is Preferential Allottee in the scrip of CNE 71 ABGPS0922E Navin Sahni The entity is Preferential Allottee in the scrip of CNE 72 ABHPB1469L Munish Bajaj The entity is Preferential Allottee in the scrip of Eco 73 ABHPM7083M Sangeeta Naresh Mittal The entity is Preferential Allottee in the scrip of HPC 74 ABHPT6904C Jayanaben Nayanbhai Thakkar The entity is Preferential Allottee in the scrip of HPC 75 ABIPS4714N Arun Sankhwal The entity is Preferential Allottee in the scrip of CNE 76 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the scrip of Esteem 92 ACEPK7596D Rshmi Kataria The entity is Pre IPO Transferee in the scrip of HPC 93 ACJPA8351R Mohd. Arif The entity is Preferential Allottee in the scrip of HPC 94 ACKPN0439N Anuj Nagpal The entity is Preferential Allottee in the scrip of Eco 95 ACMPA2650C Anshu Agarwal And Sanju Agarwal The entity is Pre IPO Transferee in the scrip of Eco 96 ACMPG5924D Dinesh Gaba The entity is Pre IPO Transferee in the scrip of HPC 97 acmpg5926b Anita Rani The entity is Pre IPO Transferee in the scrip of HPC 98 ACNPT4287B Chetan Kunverjibhai Thakkar The entity is Preferential Allottee in the scrip of CNE 99 ACQPA9417R Nikita Agarwal T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of HPC 115 AEEPG7895K Nitin Kumar Gupta The entity is Preferential Allottee in the scrip of Esteem 116 AEFPG8410F Savita Gupta The entity is Preferential Allottee in the scrip of Esteem 117 AEHPT6622C Tarannum Aamer The entity is Pre IPO Transferee in the scrip of Esteem 118 AEOPB3108E Bharti Batra The entity is Preferential Allottee in the scrip of Eco 119 AEQPM1717C Surekha Ashok Mittal The entity is Preferential Allottee in the scrip of HPC 120 AETPG1792C Navel Kishore Gupta The entity is Preferential Allottee in the scrip of Eco 121 AETPG5835L Priya Gupta The entity is Preferential Allottee in the scrip of Esteem 122 AEWPA2450G Anchal Rathi The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vikas Goyal The entity is Preferential Allottee in the scrip of CNE 139 AHGPB1747A Munesh Bansal The entity is Pre IPO Transferee in the scrip of Esteem 140 AHIPG6452D Neeru Ashish Garg The entity is Preferential Allottee in the scrip of CNE 141 AHPPA6148R Simpi Agarwal The entity is Preferential Allottee in the scrip of HPC 142 AHVPA2998M Urvashi Ahalawat The entity is Preferential Allottee in the scrip of HPC 143 AHWPK6613J Bhag Kataria The entity is Pre IPO Transferee in the scrip of HPC 144 AHWPM2448P Shweta Rathi The entity is Preferential Allottee in the scrip of HPC 145 AICPK7883R Poonam Kansal The entity is Preferential Allottee in the scrip of Esteem 146 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PO Transferee in the scrip of HPC 162 AMQPN9019G Prateek Nagpal The entity is Preferential Allottee in the scrip of Eco 163 AMTPN9992M Abheek Nagpal The entity is Preferential Allottee in the scrip of Eco 164 AODPS9750A Deepa Sejwal The entity is Pre IPO Transferee in the scrip of HPC 165 AOEPK7545Q Vidushi Kothari The entity is Pre IPO Transferee in the scrip of HPC 166 AOOPK2220E Bhupinder Kaur The entity is Preferential Allottee in the scrip of CNE 167 APZPV0747H Prithvi Sudhir Vora The entity is Preferential Allottee in the scrip of CNE 168 AQBPN5620N Tanya Narang The entity is Preferential Allottee in the scrip of Eco 169 AQOPS2031B Anil Sachdeva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 185 CWYPS1114B Rahul Solanki The entity is Preferential Allottee in the scrip of HPC 186 DNUPS8667F Urvashi Sachdeva The entity is Preferential Allottee in the scrip of Esteem 35. The summary of profit/gain earned by the preferential allottees and pre-IPO transferees belonging to Shortlisted Group in all the scrips is provided in Annexure D. 36. It is matter of common knowledge that in a private placement, wherein allotment is made to select persons or group of persons on one -to- one basis, the issuer and their promoters/ directors have connection on account of acquaintance and familiarity. Such inference of connection becomes stronger in case of private placement by an unlisted company whose share are not tradeable in market. Thus, it is safely inferred that in the case of preferential allotment by the aforesaid companies, the companies and their promoters/ directors had prior understanding, arrangement and purpose. Further, the off market transactions between the preferential allottees and the pre-IPO transferees in the said company prior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o pre IP transferees. b) Thereafter, all the companies came out with IPOs and the entities belonging to Funding Group funded substantial portion of the IPOs. IPO proceeds of respective IPO were immediately routed back to the entities of the Funding Group by the concerned companies and thus they financed their own IPO and allotted shares without receipt of consideration to the extent they returned the subscription monies to the Funding Group from IPO proceeds. c) The respective companies had actively concealed the deviation in utilisation of IPO proceeds as they deliberately did not make any disclosures as required under clause 46 of SME Listing Agreement. d) Once the shares were listed at the exchange, Trading Group entities started pushing up the price of the scrip through manipulative trades and increased the prices of the scrips astronomically. e) Trading Group entities consistently and repeatedly placed buy orders at higher prices than LTP in four fundamentally weak newly listed companies. After the expiry of the lock-in period, Trading Group entities further purchased shares from preferential allottees and pre IPO transferees at artificially increased prices. f) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price up significantly and provide hugely profitable exit to the preferential allottees and pre-IPO transferees. Since all the aforesaid companies did not have any financial standing in the securities market, in my view, the only way they could have increased their share value is by way of market manipulation. I further note that, Trading Group entities and preferential allottees/pre-IPO transferees traded amongst themselves as substantiated by their matching contribution to net buy and net sell. Further, as mentioned earlier the Trading Group entities did not have the financial capacity to buy shares at such high price and they are found to have been funded by several entities including the entities of the Funding Group. Such trading behaviour belies economic rationale and indicates existence of premeditated arrangement among preferential allottees, pre IPO transferees, Trading Group and Funding Group entities. 43. From the above facts and circumstances, I prima facie find that the preferential allottees, pre IPO transferees acting in concert with Funding Group and Trading Group have used the stock exchange system to artificially increase volume and price of the scrip for makin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of this Act or the rules or the regulations made thereunder; (b) employ any device, scheme or artifice to defraud in connection with issue or dealing in securities which are listed or proposed to be listed on a recognised stock exchange; (c) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person, in connection with the issue, dealing in securities which are listed or proposed to be listed on a recognised stock exchange, in contravention of the provisions of this Act or the rules or the regulations made thereunder; PFUTP Regulations 3. Prohibition of certain dealings in securities No person shall directly or indirectly- (a) buy, sell or otherwise deal in securities in a fraudulent manner; (b) use or employ, in connection with issue, purchase or sale of any security listed or proposed to be listed in a recognized stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of the Act or the rules or the regulations made there under; (c) employ any device, scheme or artifice to defraud in connection with dealing in or issue of securities which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of respective companies, had the knowledge of their acts and omissions. They were also under an obligation to ensure that the acts and transactions of their respective company were not in violation of any of the applicable provisions of SEBI Regulations or other applicable laws. I, therefore, prima facie find that the said directors were responsible for their respective company's acts and omissions in this case. 47. I am of the opinion that a detailed investigation of the entire scheme employed in this case is necessary to find out the role of any other entity in the said scheme, connection amongst the concerned entities, the ultimate owners of funds used for manipulating the price/volume of the scrips. Considering that Guiness Corporate Advisors limited acted as a merchant banker in the IPOs of all the companies, its role in the entire scheme employed in the present case as discussed hereinabove may also be examined in the course of detailed investigation. The inquiry/ preliminary investigation also revealed off market transfers of physical shares from IPO allottees to several entities immediately after the IPOs. Since, as per ICDR Regulation 2009, the IPO allotment is comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay from SME segment through Minimum Bid Size, may also be induced to invest in these companies. Unless prevented they may use the stock exchange mechanism in the same manner as discussed hereinabove for the purposes of their dubious plans as prima facie found in this case. In my view, the stock exchange system cannot be permitted to be used to achieve unlawful benefits whether tax related or otherwise. Considering these facts and the indulgence of a listed company in such a fraudulent scheme, plan, device and artifice as prima facie found in this case, I am convinced that this is a fit case where, pending investigation, effective and expeditious preventive and remedial action is required to be taken by way of ad interim ex -parte in order to protect the interests of investors and preserve the safety and integrity of the market. 50. In view of the foregoing, in order to protect the interest of the investors and the integrity of the securities market, I, in exercise of the powers conferred upon me in terms of section 19 read with section 11(1), section 11 (4) and section 11B of SEBI Act, 1992, pending inquiry/investigation and passing of final order in the matter, hereby restrain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BLRPS4522G Sakshi Saxena Director of HPC 17 AAKPG5996K Arun Kumar Gupta Director of HPC 18 AAACA5715D Avisha Credit Capital Limited Funding Group 19 AACCG6377M Goldline International Finvest Limited Funding Group 20 AAECA8718H Ams Powertronic Private Limited Funding Group 21 AIJPD7329J Madhuker Dubey Funding Group 22 AWWPK8525E Satendra Kumar Funding Group 23 ARUPK1589P Sumit Kumar Funding Group 24 AXFPR4439L Ram Prakash Funding Group 25 AAFCM3716M Mayfair Infosolutions Pvt Ltd Funding Group 26 AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inghal Pre IPO Transferee 47 AHGPB1747A Munesh Bansal Pre IPO Transferee 48 BBWPS2176R Naz Shazia Pre IPO Transferee 49 AAEPK3805B Parveen Kumar Pre IPO Transferee 50 AAHPG1456D Sanjeev Gupta Pre IPO Transferee 51 AAHPG8607Q Vikas Gupta Pre IPO Transferee 52 AAIPP1301R Neeraj Prakash Pre IPO Transferee 53 AAJPK2929F Virender Kumar Pre IPO Transferee 54 AALHA3711R Amit Goyal Huf Pre IPO Transferee 55 AALHM9796E Manish Kataria Pre IPO Transferee 56 AALPD0474G Satish Kumar Dhawan Pre IPO Transferee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IPO Transferee 78 AGYPG5066C Inder Jeet Gaba Pre IPO Transferee 79 AGYPP5247Q Mridu Prakash Pre IPO Transferee 80 AHWPK6613J Bhag Kataria Pre IPO Transferee 81 AIHPC0099A Vipul Chandra Pre IPO Transferee 82 AIMPB9015E Nikesh Bardia Pre IPO Transferee 83 AIVPJ9518R Bhawna Aggarwal Pre IPO Transferee 84 AKEPG4655R Yogesh Gaba Pre IPO Transferee 85 AMGPM9259F Virender Pal Singh Mainee Pre IPO Transferee 86 AMNPJ8901E Sagar Jain Pre IPO Transferee 87 AMQPA5671D Ankit Agarwal Pre IPO Transferee 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Madhu Sankhwal Preferential Allottee 109 ABVPG2657B Ashokh Garg Preferential Allottee 110 ABXPH1788A Sukhinder Singh Hooda Preferential Allottee 111 ACDPA3515B Gaurav Arya Preferential Allottee 112 ACNPT4287B Chetan Kunverjibhai Thakkar Preferential Allottee 113 ADJPR7115B Vikas Raj Preferential Allottee 114 ADNPA7732P Kailash Chandra Agarwal Preferential Allottee 115 AHFPG7290J Vikas Goyal Preferential Allottee 116 AHIPG6452D Neeru Ashish Garg Preferential Allottee 117 AJZPM7650C Sushant Muttreja Preferential Allottee 118 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 138 AMQPN9019G Prateek Nagpal Preferential Allottee 139 AMTPN9992M Abheek Nagpal Preferential Allottee 140 AQBPN5620N Tanya Narang Preferential Allottee 141 AACPC7067R Rajesh Chawla Preferential Allottee 142 AACPC7068A Mukesh Chawla Preferential Allottee 143 AADHP4727Q Pawan Kumar Singhal Huf Preferential Allottee 144 AADPV5705E Sanjeev Verma Preferential Allottee 145 AAHPG5906C Tarsem Chand Gupta Preferential Allottee 146 AAHPG5907D Neelam Gupta Preferential Allottee 147 AAMPG7571Q Ram Avtar Gupta Preferential Allottee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tee 168 AJUPS9413N Satya Narain Saria Preferential Allottee 169 AQOPS2031B Anil Sachdeva Preferential Allottee 170 ATEPG0959P Vibhor Gupta Preferential Allottee 171 ATEPG8202F Vanshika Gupta Preferential Allottee 172 BKEPS8583H Ekta Sachdeva Preferential Allottee 173 CGPPS3517P Akansha Singhal Preferential Allottee 174 DNUPS8667F Urvashi Sachdeva Preferential Allottee 175 AAAPJ3918J Sangeeta Devi Preferential Allottee 176 AACCM0442K Moran Plantation Pvt Ltd Preferential Allottee 177 AACCP2436Q Parasramka Holdings (P) Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Preferential Allottee 198 AEAPG2172B Pulkit Gupta Preferential Allottee 199 AEQPM1717C Surekha Ashok Mittal Preferential Allottee 200 AEWPA2450G Anchal Rathi Preferential Allottee 201 AFBPA0663F Anjana Garg Preferential Allottee 202 AFOPG8341M Gaurav Gupta Preferential Allottee 203 AGPPK4328L Sunil Kumar Preferential Allottee 204 AGYPG1226G Shalini Gupta Preferential Allottee 205 AHPPA6148R Simpi Agarwal Preferential Allottee 206 AHVPA2998M Urvashi Ahalawat Preferential Allottee 207 AHWPM2448P Shweta Rathi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AAGCR2643P River High Right Share Brokers Private Limited Trading Group 228 AAICM3230H Murlidhargiri Trading Pvt. Ltd. Trading Group 229 AAECT4670L Trucklink Vinmay Trading Private Limited Trading Group 230 AADCC2898Q Century Buildmart Pvt. Ltd. Trading Group 231 DRUPS8079D Stallion Trading Co. Prop. Sapna Trading Group 232 AJKPY8234D Vishal Yadav Trading Group 233 AADCB3034D Blue Star Impex Private Limited Trading Group 234 AAFCM3345L Mahashiv Metal And Alloys Private Limited Trading Group 235 APBPK8097B Jai Kishan Trading Group 236 AKEPG0828N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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