SEBI issues 394-page final order in market manipulation case involving 226 entities

SEBI examined the trading patterns and the roles of 226 individuals and entities in these schemes.

Who it concerns: The order concerns 226 entities, including Hanif Shekh, Kasambhai Shekh, Robert Resources Ltd., Econo Trade India Ltd., Mauria Udyog Ltd., Vee Em Infocenter Ltd., and numerous other individuals and firms listed in the noticee list.

What SEBI found or ordered

• SEBI issued a Final Order under Sections 11(1), 11(4), 11(4A), 11B(1), and 11B(2) of the SEBI Act, 1992.
• The order addresses allegations of market manipulation in the scrips of Mauria Udyog Ltd., Vishal Fabrics Ltd., 7NR Retail Limited, GBL Industries Ltd., and Darjeeling Ropeway Company Ltd.
• The document includes sections for 'Disgorgement of Unlawful Gains Made by Entities' and 'Monetary Penalty and Other Directions Against the Noticees', indicating financial penalties and recovery of gains were directed.
• The order reviews preliminary issues raised by noticees, including claims of lack of urgency for interim orders, non-compliance with inquiry rules, and inordinate delay in issuing the Show Cause Notice (SCN).

Also in the document

• The order is extensive, spanning 394 pages, and involves a large number of noticees (226 entities).
• The proceedings involved appeals to the Hon’ble SAT and Writ Petitions before the Hon’ble Bombay High Court.
• SEBI considered allegations that labeling Hanif Shekh as the 'kingpin' in an earlier Interim Order caused prejudice.