Stock Market regulator SEBI has restrained Ashmi Financial Consultancy Pvt Ltd for a period of three months from April 7 from buying, selling or dealing in the securities marke, with immediate effect.
The company was found guilty of manipulating the demand for shares in the IPOs of Shoppers Stop and IDFC in collusion with three operators — Mr Dhaval Mehta (Dhaval M), Mr Dhaval Katakia (Dhaval K) and Mr Dharmesh Bhupendra Mehta (Dharmesh). The regulator concluded that the company deprived retail individual investors of their legitimate shares in these two IPOs and made an unlawful gain of Rs 79.71 lakhs.
SEBI ruled that Ashmi shall disgorge the unlawful gain and also pay interest on these gains at 10 per cent for the five and a half year period from May/August 2005 to March 2011 amounting to Rs 43.84 lakh. If Ashmi failed to pay the sum total of unlawful gains plus interest of Rs 1.23 crore within 45 days (by means of a crossed demand draft in favour of SEBI payable at Mumbai), they cannot access the securities market for another seven years without prejudice to SEBI's right to enforce disgorgement along with further interest till actual payment is made, said the order.
Ashmi's demat accounts would also remain frozen until they pay up, said SEBI.
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