MUMBAI: Market regulator SEBI has withdrawn the interim order against some entities related to Manish Marwah and Dilip Nabera in the case of manipulation of Atlanta stock.
At the same time, SEBI has initiated adjudication proceedings against Manish Marwah, Dilip Nabera and five entities related to them. SEBI had passed an interim order against all the said entities, barring them from dealing in shares of Atlanta.
Those against whom the orders have been issued include Sadhana Dilip Nabera, Hem Kanak Mercantile, Strategic Research Intelligence, Neol Equity Research, Eden Realty Private, Him Realty Private, Ellis Equity Advisors, Spot Light Securities, and Winstar E-Com.
Meanwhile, Kishore Thakural and Jay Thakural, shareholders of Atlanta, have signed a consent order with the regulator ending the proceedings against them.
They were found to have fraudulently cornered the shares of the company reserved under employee quota during its initial public offering. This is the first order of its kind, where Sebi has found the employee quota in a public issue.
SEBI had launched an investigation into the IPO issue of Atlanta in February, 2007. It was found that the Thakurals had provided funds to the employees of the company specifically to apply shares on their behalf.
Upon allotment, these shares were transferred by the employees to them by way of offmarket transfers at the issue price, though the market price was substantially high.
Under the terms of the consent order, the Thakurals have remitted the entire profit of Rs 15 lakh which they had earned by cornering the shares of Atlanta.
As for Manish Marwah’s involvement in price rigging of the shares, SEBI had initiated adjudication proceedings against several entities (that include Mr Marwah in personal capacity) earlier this month.
