October 29, 1997
PR No. 129/1997

SUSPENSION OF M/S. S. I. AGARWAL, MEMBER OF 
THE STOCK EXCHANGE, MUMBAI FOR INDULGING IN MARKET 
MANIPULATION IN THE SCRIP OF MAGAN INDUSTRIES LTD. 
INVESTIGATIONS, ENFORCEMENT AND SURVEILLANCE DEPARTMENT

During the period between December 1995 to January 1996 the price in the scrip of Magan Industries Limited had witnessed abnormal rise from Rs.27/- to Rs.118/- in a span of 18 trading days at the Stock Exchange, Mumbai. SEBI ordered investigation in the matter to ascertain whether the abnormal rise in the price was due to any market manipulation / price rigging etc. Investigation revealed that the price rise was caused by certain entities cornering the floating stock of the company and then offering the shares in the auction to benefit from the manipulated price which was very high. It was found that M/s. S.I. Agarwal, Member of the Stock Exchange, Mumbai, was one of the brokers who indulged / abated in the market manipulations of Magan Industries Limited. 
 
SEBI had appointed Enquiry Officer in the case of S.I. Agarwal who in his report found M/s. S.I. Agarwal guilty of market manipulation which is in violation of Regulation 4 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 1995 and Regulation 7 of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992. After considering the report of the Enquiry Officer and after giving appropriate opportunity, Chairman, SEBI has ordered suspension of M/s. S.I. Agarwal Member, The Stock Exchange, Mumbai, for a period of two months w.e.f. November 10, 1997.