9911796707
TMI Blog2008 (12) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... ing was 42.88%. Cyberspace was promoted by Sarvshri Rajendra Kumar Mohta, Arjun Kumar Agarwal, and Anil Kumar Beejawat. In 1993-94 Sarvshri A.K. Johari and Arvind Johari took over Cyberspace. Century Consultants Ltd. (CCL) is one of the group companies of Cyberspace and a member of NSE and BSE and its directors are Sarvshri G.N. Johari, A.K. Johari, Arvind Johari and J.C. Verma. Some of the directors of Cyberspace and CCL are common. 2. On a preliminary enquiry made by BSE, it found that the promoters of Cyberspace were involved in activities which may have contributed towards manipulating the price of its scrip. There were media reports to this effect pointing out some problems that had arisen in some of the settlements relating to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e artificial volumes and market in the scrip. It was also alleged that the price of the scrip had been artificially raised by these circular trades. The noticee was alleged to have violated the provisions of Regulation 4(a) to 4(d) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (for short the regulations). It was called upon to show cause why appropriate directions be not issued to it under sections 11 and 11 B of the Securities and Exchange Board of India Act, 1992 (hereinafter called the Act). On receipt of this notice, the appellant filed a reply dated April 10, 2004 which purports to be on his own behalf. We cannot understand how the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the matter, the whole-time member has passed a common order against all the entities allegedly involved in the game plan including the noticee and the appellant. Amit Interchemicals P. Ltd., among others, has been held guilty of executing circular trades thereby creating artificial volumes in the scrip of Cyberspace. All the entities including the noticee have also been found to have manipulated the price of the scrip. In view of these findings the whole-time member by his order dated March 3, 2008 debarred, among others, Amit Interchemicals P. Ltd. and the appellant as its Director from accessing the securities market for a period of 5 years. They have also been prohibited from buying, selling or dealing in securities in any manne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n issued to him. In response to one of the notices, his father sent a reply stating that the appellant had nothing more to state beyond what he had stated in his reply dated April 10, 2004. It is, thus, clear that the appellant did not dispute that the circular trades had been executed among different entities which were said to be the front entities of the promoters of Cyberspace and CCL. We have perused the charts now produced before us by the Board and find that large number of trades have been executed by Amit Interchemicals P. Ltd. with the shell companies and that within the group the trades were circular. The appellant cannot disown responsibility in regard to the trades as he was not only the Director of the company but has also sig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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