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November 15, 2002
PR No. 253/2002
BARODA AGRO INDUSTRIES LTD.
SEBI investigated the role of some brokers of BSE and M/S Baroda Agro Industries Ltd. in the manipulation of prices in the scrip of M/S Baroda Agro Industries Ltd. It was found that brokers had violated the provisions of SEBI (Stock Brokers and Sub-brokers) Regulations 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995.
As a consequential action, an enquiry officer was appointed as per the relevant regulation for taking action against the brokers under the appropriate Regulations. The enquiry officer has submitted his report to the Board in respect of following brokers/sub-broker and observed that they were guilty of violating the provisions of SEBI Regulations:
- M/S S K Investments – sub broker to M/S R K Jhunjhunwala, member BSE
- M/S G K Fozdar – member BSE
- M/S Malini Sanghvi Securities Private Ltd.- member BSE
These brokers/sub-brokers were inter-alia given an opportunity of personal hearing before Chairman, SEBI, which was availed by them. SEBI after considering the facts, reply and their submissions at the time of Chairman’s hearing, found them guilty of violating the provisions of SEBI regulations and has warned them and asked them to be cautious in future.
The Chairman has also ordered that M/S Baroda Agro Industries Ltd be prohibited from accessing the capital markets for a period of three years from 15/11/02 and its Directors - Mr. Sanjay A Choksi, Mr. Arun Choksi, Mr. N K Patel, Mr. Ravindra Patel, Mr. Praful C Vin, Mr. Parag Mehta, Mr. Jagdish Shah and Mr. Amit N Shah have been debarred from dealing in securities for a period of three years from 15/11/02 for their involvement in the price manipulations in the scrip of M/S Baroda Agro Industries Ltd.
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