SEBI - CHAIRMAN/ MEMBERS’ ORDERS
WTM/PS/50/IVD/ID-1/OCT/2010 dtd. 27-Oct-2010
Order in respect of Advik Laboratories Ltd., Mr. V.K. Jain, Mr. Aditya Jain, Ms. Divya Jain, Ms. Shakuntala Jain, Ms. Kumud Jain, Mr. Rajkumar Jain, Mr. Vivek Jain, Ms. Shivani Jain, Advik Finance and Properties Pvt. Ltd.in the matter of Advik Laboratories Limited
In the matter of Advik Laboratories Limited (ALL) (Listed on ASE, DSE and MSE)
Noticees:
Advik Laboratories Ltd. (PAN: AAACA8545R),
Promoter of ALL
Mr. V.K. Jain (PAN: AAGPJ4259E),
Mr. Aditya Jain (PAN: AAGPJ4260R)
Ms. Divya Jain (PAN: AGCPM0147L),
Late Ms. Shakuntala Jain
Ms. Kumud Jain (PAN: AAIPJ5196J),
Mr. Rajkumar Jain
Mr. Vivek Jain (PAN: AFBPJ9301D)
Ms. Shivani Jain (PAN: ASOPB7742E)
Advik Finance & Properties Pvt. Ltd. (PAN: AAACA7209C)
Case in Brief:
Investigation for the period of September 26, 2003 to January 05, 2004,
The price moved from Rs 19.91 to Rs 29.30
It was alleged that company had made various corporate announcement to increase the price of share and promoter group had off loaded their shares in the market.
Hence Noticees were alleged for violating... + Read more
In the matter of Advik Laboratories Limited (ALL) (Listed on ASE, DSE and MSE)
Noticees:
Advik Laboratories Ltd. (PAN: AAACA8545R),
Promoter of ALL
Mr. V.K. Jain (PAN: AAGPJ4259E),
Mr. Aditya Jain (PAN: AAGPJ4260R)
Ms. Divya Jain (PAN: AGCPM0147L),
Late Ms. Shakuntala Jain
Ms. Kumud Jain (PAN: AAIPJ5196J),
Mr. Rajkumar Jain
Mr. Vivek Jain (PAN: AFBPJ9301D)
Ms. Shivani Jain (PAN: ASOPB7742E)
Advik Finance & Properties Pvt. Ltd. (PAN: AAACA7209C)
Case in Brief:
Investigation for the period of September 26, 2003 to January 05, 2004,
The price moved from Rs 19.91 to Rs 29.30
It was alleged that company had made various corporate announcement to increase the price of share and promoter group had off loaded their shares in the market.
Hence Noticees were alleged for violating PFUTP, SAST and PIT regulations.
Advik had made various corporate announcements which were later found to be pre-mature.
The promoters transferred shares of Advik to connected entities and started trading actively among themselves.
The promoter and related/ connected entities altogether sold net quantity of 62,12,744 shares during the relevant period accounting for 94% of the net sales
By such offloading the holding of promoters of Advik reduced from 32.34% to 12.36%
No disclosure of this was made to BSE by the company as per SAST Regulations.
A few promoters of Advik were also found indulged in synchronized trading which contributed to the increase in volume
When promoters stopped trading the price declined.
Therefore the promoters of Advik sold their stake in the market when it was making price sensitive corporate announcements and thereby played fraud on gullible investors.
Order:
Noticees except Late Ms. Shakuntala Jain are restrained from buying, selling and dealing or accessing the securities market directly or indirectly in any manner whatsoever for a period of one year from the date of this order.
Case where company had made various corporate announcements to increase the price of share and promoter group had off loaded their shares in the market.
Case where company had made various corporate announcements to increase the price of share and promoter group had off loaded their shares in the market.
... + Read more