Further development on this order: AN INTERIM ORDER DATED 01/10/2007 DISPOSED OF, AS APPLICANT AGREED TO PAY RS.11000 AGAINST SETTLEMENT CHARGES AND RS.22000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: AN INTERIM ORDER DATED 01/10/2007 DISPOSED OF, AS APPLICANT AGREED TO PAY RS.1229000 TO NSE ALONGWITH INTEREST TOWARDS DISGORGED OF ILL-GOTTEN GAINS AND RS.650000 TOWARDS SETTLEMENT CHARGES, AS PER CONSENT ORDER DATED 15/10/2008

Further development on this order: AN INTERIM ORDER DATED 01/10/2007 DISPOSED OF, AS APPLICANT AGREED TO PAY RS.207500 AGAINST SETTLEMENT CHARGES AND RS.415000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: AN INTERIM ORDER DATED 01/10/2007 DISPOSED OF, AS APPLICANT AGREED TO PAY RS.258500 AGAINST SETTLEMENT CHARGES AND RS.517000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: AN INTERIM ORDER DATED 01/10/2007 DISPOSED OF, AS APPLICANT AGREED TO PAY RS.280000 AGAINST SETTLEMENT CHARGES AND RS.560000 AGAINST AMOUNT DISGORGED, AS PERCONSENT ORDER DATED 04/07/2008

Further development on this order: AN INTERIM ORDER DATED 01/10/2007 DISPOSED OF, AS APPLICANT AGREED TO PAY RS.42500 AGAINST SETTLEMENT CHARGES AND RS.85000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: AN INTERIM ORDER DATED 01/10/2007 DISPOSED OF, AS APPLICANT AGREED TO PAY RS.49000 AGAINST SETTLEMENT CHARGES AND RS.98000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: AN INTERIM ORDER DATED 01/10/2007 DISPOSED OF, AS APPLICANT AGREED TO PAY RS.69000 AGAINST SETTLEMENT CHARGES AND RS.138000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF AS APPLICANT, AGREED TO PAY RS.17,000 AGAINST SETTLEMENT CHARGES AND RS.34,000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.1,22,000 AGAINST SETTLEMENT CHARGES AND RS.2,44,000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.1,37,500 AGAINST SETTLEMENT CHARGES AND RS.2,75,000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.1,47,500 AGAINST SETTLEMENT CHARGES AND RS.2,95,500 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.10,500 AGAINST SETTLEMENT CHARGES AND RS.21,000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED JULY 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.14,000 AGAINST SETTLEMENT CHARGES AND RS.28,000 AGAINST AMOUNT DISGORGED, AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.22,000 AGAINST SETTLEMENT CHARGES AND RS.44,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.23,000 AGAINST SETTLEMENT CHARGES AND RS.46,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.31,500 AGAINST SETTLEMENT CHARGES AND RS.63,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.35,500 AGAINST SETTLEMENT CHARGES AND RS.71,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.36,500 AGAINST SETTLEMENT CHARGES AND RS.73,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.37,000 AGAINST SETTLEMENT CHARGES AND RS.74,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.4,29,000 AGAINST SETTLEMENT CHARGES AND RS.8,58,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.41,000 AGAINST SETTLEMENT CHARGES AND RS.82,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.41,500 AGAINST SETTLEMENT CHARGES AND RS.83,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.42,000 AGAINST SETTLEMENT CHARGES AND RS.84,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.43,500 AGAINST SETTLEMENT CHARGES AND RS.87,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.46,500 AGAINST SETTLEMENT CHARGES AND RS.93,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.52,000 AGAINST SETTLEMENT CHARGES AND RS.1,04,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.82,000 AGAINST SETTLEMENT CHARGES AND RS.1,64,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.84,000 AGAINST SETTLEMENT CHARGES AND RS.1,68,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.94,000 AGAINST SETTLEMENT CHARGES AND RS.1,88,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

Further development on this order: ORDER DATED 01/10/2007 DISPOSED OFF, AS APPLICANT AGREED TO PAY RS.74,000 AGAINST SETTLEMENT CHARGES AND RS.1,48,000 AGAINST AMOUNT DISGORGED AS PER CONSENT ORDER DATED 04/07/2008

  October 01, 2007
PR No. 269/2007

Order in the matter of M/s. Ballarpur Industries Ltd. (BILT)

Shri G. Anantharaman, Whole Time Member, SEBI, has passed an ad interim ex-parte order on October 1, 2007 and issued following directions under Section 11B, 11(4)(b) and 11D of the SEBI Act, in the matter of dealing in the shares of Ballarpur Industries Ltd (BILT): 
 
Shri Raajeev Kasat and Shri Rajeev Shroff are hereby directed not to buy, sell or deal in any securities, directly or indirectly till further directions in this regard.
 
The ‘clients’ identified in the order for indulging in unfair trade practice are directed to deposit the profits made by them, as per the calculations shown in Table 3 of the said ad-interim order, with the National Stock Exchange of India Ltd (NSE) within 15 days from the date of issue of this order. NSE shall keep this amount in their custody till further directions from SEBI. Failure to deposit the amount by the identified clients within the prescribed time would result in further actions against these clients as may be deemed fit. 
 
M/s. UTI Securities Limited and M/s Emkay Shares and Stock Brokers Pvt. Ltd. to conduct an internal enquiry into the above matter and initiate appropriate actions against their employees or agents named in this order and submit an action taken report within 30 days of this order to SEBI. Further, M/s UTI Securities Limited and M/s Emkay Shares and Stock Brokers Pvt. Ltd. are directed to take steps to ensure that their trading systems, client information and other facilities are not misused to the detriment of their clients or market integrity and that they fulfill their fiduciary obligations to their clients. They are also directed to exercise due diligence in supervising their dealers and other employees to the above end.
 
It is further advised that market intermediaries strengthen their existing systems and internal controls to avoid occurrence of any such violations by their employees, agents, etc.
 
Analysis of the trading pattern in the shares of M/s. Ballarpur Industries Ltd. (BILT) during the period November 01, 2006 to June 13, 2007, brought out that a set of clients, all of whom are registered with the broker M/s Emkay Shares and Stock Brokers Pvt. Ltd., as also a director of another broking firm, M/s Prayas Securities Pvt. Ltd. were found to be dealing in the shares of BILT around the 
 
time of large sell orders by a foreign institutional investor (FII). The FII was observed to be selling its holdings in BILT, through M/s UTI Securities Ltd. on different dates within this period. On each of these dates a few from amongst these identified clients sold prior to the FII sale and bought an identical quantity after the sell order was placed on behalf of the FII. This trading strategy adopted by these clients appears to be in the nature of ‘customised front running’. 
 
Prima facie there appears to be a clear pattern in which Shri Raajeev Kasat, dealer of M/s UTI Securities Limited is seen to be passing information to Shri Manish Innani at Prayas Securities Pvt. Ltd. and Shri Rajeev Shroff at Emkay Shares and Stock Brokers Pvt. Ltd. Shri Rajeev Shroff in turn appeared to have passed on the information to a group of apparently set up clients, who indulged in ‘customised front running’. The pattern of order placement by the identified clients in order to benefit from the spread in prices at the time of short selling and short covering, indicates that the timing and quantity of orders of the FII was well within the knowledge of the identified clients who were observed to be ‘customised front running’. 
 
Front running is an activity in which a trader takes a position of unfair advantage in advance of a large buy or sell order that the trader knows will move the price of that equity in a predictable fashion.
 

Mumbai

October 01, 2007

For full copy of order against ANIL L.NAGPAL, click here.

For full copy of order against ASHA PANKAJ DEDHIA, click here.

For full copy of order against DEEPALI GHANSHYAM SHROFF, click here.

For full copy of order against DHWAJA SECURITIES & SERVICES PVT.LTD., click here.

For full copy of order against DOLAR VALIA, click here.

For full copy of order against EMKAY SHARE & STOCK BROKERS LTD., click here.

For full copy of order against GHANSHYAM VINAYKANT SHROFF (HUF), click here.

For full copy of order against JAPAN HARESH SHAH, click here.

For full copy of order against KETAN P.SHROFF, click here.

For full copy of order against MALINI P.SHROFF, click here.

For full copy of order against MANISH INNANI, click here.

For full copy of order against MURARILAL R.DUJODWALA (HUF), click here.

For full copy of order against NARESH KUMAR, click here.

For full copy of order against NARESH KUMAR (HUF), click here.

For full copy of order against NIKHIL SHROFF (HUF), click here.

For full copy of order against NISHITH N.CHOKSEY (HUF), click here.

For full copy of order against NUTAN H.DHANKI, click here.

For full copy of order against P.R.SHROFF, click here.

For full copy of order against PANKAJ L.DEDHIA (HUF), click here.

For full copy of order against PANKAJ LAXMICHAND DEDHIA, click here.

For full copy of order against PARAS SIROHIA (HUF), click here.

For full copy of order against PRAVIN G.SHROFF, click here.

For full copy of order against PURVI CHOKSEY, click here.

For full copy of order against PUSHPA VINOD SAVLA, click here.

For full copy of order against R.P.SHROFF (HUF), click here.

For full copy of order against RAAJEEV KASAT, click here.

For full copy of order against RAJEEV SHROFF, click here.

For full copy of order against ROSHAN P.SIROHIA, click here.

For full copy of order against S.MADASAMY, click here.

For full copy of order against SANDEEP NARESH KUMAR, click here.

For full copy of order against SANJAY M.DUJODWALA (HUF), click here.

For full copy of order against SHREYAS DHIRENDRA SANGOI, click here.

For full copy of order against SIMRANKAUR R.CHADHA, click here.

For full copy of order against SNEHA ARVIND VALIA, click here.

For full copy of order against SUNIL M.DUJODWALA (HUF), click here.

For full copy of order against TEJAS DHIRENDRA SANGOI, click here.

For full copy of order against URMILA P.SAVLA, click here.

For full copy of order against UTI SECURITIES LTD., click here.