Mumbai: In a recent order the capital markets regulator said that it has found violation of securities law in the scrip of Birla Pacific Medspa Ltd (BPML) during July 7-15, 2011 and consequently, Yash Birla along with nine other individuals have been barred from accessing or transacting in the securities market for a period of two years.
It is alleged that BPML had transferred Rs 7 crore each to entities named Sanjukta Vanijya Pvt Ltd and Darshan Tradelink Pvt Ltd on July 07, 2011 as pass-through entities from IPO proceeds, which were then advanced to net buyers on listing day namely Jalan Cement Works Ltd (Rs 3 crore), Marutinandan Infosolutions Pvt Ltd (Rs 2.29 crore), Orbit Financial Consultants Pvt Ltd (Rs 2 core), Rupak Trading Pvt Ltd (Rs 2.29 crore).
Together, these four entities paid Rs 12.52 crore on July 7, 2011 to their broker GRD Securities towards their pay-in obligation against buy trades in the scrip of BPML on listing day.
The four net buyers after receiving funds from the proceeds of the IPO from BPML, acquired a net of 67,11,242 shares (value of around Rs 9.29 crore) — 21.56 per cent of the total delivered quantity of 3,11,08,577 shares on July 07, 2011 and 10.3 per cent of the issue size.
The investigation found that in violation of the principles of fair market where the price of a scrip is to be decided on the demand and supply, the buyer entities namely Jalan Cement, Rupak Trading, Orbit, and Marutinandan were the artificial buyers of shares of BPML who were financed by the BPML.
