Gitanjali Gems chief Mehul Choksi, Prime Securities among 26 barred from stock markets
Moneylife Digital Team 19 July 2013

SEBI as well bourses NSE, BSE and MCX-SX has decided to suspend 'unique client codes' of the 26 entities, including Gitanjali Gems' managing director and Prime Securities from trading for six months due to suspected market manipulation

Market regulator Securities and Exchange Board of India (SEBI) and bourses have barred Gitanjali Gems’ promoter Mehul Choksi and other 25 entities in relation with suspected market manipulation. This follows an investigation carried out by SEBI and National Stock Exchange (NSE) into the trading activities of Prime Broking Co (India) Ltd and trading in Gitanjali Gems by these entities.

 

In a similar circular issued late on Thursday, NSE, BSE and MCX-SX said, "Pursuant to the decision of SEBI and NSE which are investigating the trading activity of Prime Broking Company (India) Ltd and trading in Gitanjali Gems Ltd by set of clients, Unique Client Code (UCC) in respect of 26 entities/ persons are disabled from trading with immediate effect for a period of 6 months or till conclusion of investigation by NSE, whichever is earlier".

 

Here is the list of entities barred from the stock markets by SEBI and the bourses…

 

Name of the entity

PAN

Albers Diamonds Private Limited

AAICA4525F

Avtar Gems Private Limited

AAICA4526G

CLT Investments Pvt Ltd

AAACC9692D

CSA Holding Private Limited

AAACA7112Q

Facet Electronic & Electrical Private Limited

AABCF7275L

Fender Mercantile Private Limited

AABCF8631J

Jaiwanti Mercantiles Pvt Limited

AACCJ5103C

Jinal Infratech Private Limited

AACCJ8001B

Jinal Mercantile Private Limited

AACCJ7270J

Magnifique Gems Private Limited

AAGCM5160N

Manoj Madhav Vankar

ABWPV6447M

Mehul Choksi

AABPC1451E

Pinky Agro Foods Private Limited

AAGCP0004N

Prime Research And Advisory Ltd

AAACP3122F

Prime Securities Ltd

AAACP4089M

Primesec Investments Limited

AAECP4400C

Rhoda Infrastructure Private Limited

AAFCR1087C

Rishabh Technomarine Private Limited

AAECR1364D

Sadhiv Mercantile Private Limited

AAPCS0583G

Sancheti Properties Private Limited

AAKCS4345R

Sarvin Mercantile Pvt Ltd

AARCS1698C

Shraddha Garments Private Limited

AAPCS2367C

Sneaking Infrastructure Private Limited

AAPCS7733L

Somerset Infrastructure Private Limited

AARCS4229D

Trusha Infrastructure Pvt Ltd

AAECT0919N

Vankars Gems & Jewelleries  Private Limited

AADCV6467A

 

All these 26 entities are suspected to be linked to Prime Broking. As of March 2013, Mehul Choksi, managing director of Gitanjali Gems held 51.62% stake, while Prome Broking had 1.85% stake in the company. Life Insurance Corporation of India (LIC) and Bennett Coleman and Company Ltd, the publisher of Times of India hold 4.36% and 1.73% stake, respectively in Gitanjali Gems.

 

While the investigations are continuing, the stock exchanges - including NSE, BSE and MCX-SX - decided to suspend 'unique client codes' of the 26 entities from trading for a period of six months, or till the conclusion of the probe, whichever is earlier, they said in similar circulars.

 

Shares of Gitanjali Gems closed Thursday 4.7% down at Rs109.85. The share has been continuously falling over the last month, locked in lower circuit on most days. It has fallen 75% from Rs550 on June 18th to Rs109.85 yesterday.

Comments
sanjay
8 years ago
There are several other stocks & entities involved in this blatant white collar crime . how to stop this ??
Ramesh Poapt
8 years ago
Equity investment is, sometime, about 'wealth management'-but 'disaster management'!
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