MUMBAI, April 6: In a move aimed at nailing down individuals and entities failing to abide by it's regulatory framework, Sebi has filed criminal complaints and launched prosecution in 10 cases. These cases have been filed against individuals and entities under Section 24 of the Sebi Act, 1992, for violation of the Sebi Act and also under Section 621 of the Companies Act, 1956. Sebi has also lodged criminal complaints against Avinash Magan and 16 other entities who were found guilty of insider trading. According to Sebi, these entities had colluded with him in creating an artificial market and rigging up the share price of Napa Papers from Rs 9.50 to Rs 70 in 17 trading sessions. This in turn has violated regulation 4 of the Sebi (prohibition of the fraudulent and unfair trade practices relating to the securities market) Regulations 1995.In another case, Mihir Ghelani, Yogendra Ruparel and Dipak Dalal are also been prosecuted for rigging prices of Kamakshi Housing from Rs 24 to Rs 310 in 50 tradingdays.
The regulator has also filed complaints against Rushabh Securities for violation of Regulation 22 (1) of the Sebi Regulations, 1994 and Regulation 22 (12) of the said regulation of 1997.
The company had failed to make payment in terms of public offer made by it to acquire shares of Rosemount Pharma within the time stipulated in regulation 22(1) of the Sebi (Substantial acquisition of shares and takeovers) Regulations, 1994 and Regulation 22(12) of the said regulation of 1997.
Meanwhile, Shree Dewan Steels had been found guilty of mis-stating the prospectus leading to fraudulent inducement of investors to buy or deal in the shares of the company in violation of Sections 63 and 68 of the Companies Act, 1956.
Prosecution has also been launched in the cases of companies for not redressing investors grievances. These include Chandigarh Packaging Products, Radhika Spinning Mills, Xedd Telecom, Richimen Silks, Mahadev (Agro) Industries and Mithila Steels.
Sebi has also moved applications before theAndhra Pradesh high court for permission to launch prosecution against OMC Computers and KP Gelatines and Chemicals for violation of Sections 73, 113 and 207 of the Companies Act, 1956.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
