Kumar Rajaratnam, J. (Presiding Officer) - (1.) APPEAL is taken up with consent of both parties for final disposal.
(2.) The appellants are husband and wife and they have been debarred from associating, buying, selling or dealing in securities directly or indirectly for a period of one year by an order passed by the respondent dated 6.5.2004. Aggrieved by the order of the respondent the appellants have preferred this appeal. There was a company known as Magic Trading and Agencies Ltd. (hereinafter referred to as MTAL). This company was listed in the Stock Exchange, Mumbai. It was basically an investment company. The scrip of the company was not actively traded and between the years 1998-99, there were only three trades for a total volume of 900 shares. In February 2000, the first trade was noticed at the price of Rs. 28.25. The price of the scrip slowly fell from Rs. 28.25 in February 2000 to Rs. 9 by the end of August 2000. The scrip never witnessed any upward movement.
(3.) THE Registrar of Companies, Chennai received certain complaints alleging that MTAL was taken over by name QPRO IT Services Pvt. Ltd. (hereinafter referred to as QPRO). THE said company was contemplating to go for a private placement of share to the tune of Rs. 10 crores. THE complaint of R.O.C. further alleged that the management of QPRO comprising of one Mr. Madhusudan Khemka and Ms. Geeta Sundaresh were involved in criminal activities and cases and there were cases of FERA violation. THE further allegation against Mr. Khemka and Ms. Sundaresh was that they were trying to lower the market for the shares and ultimately to offload the shares in the market at an enhanced price. THE allegation was that Mr. Khemka and Ms. Sundaresh were trying to hammer down the price before they are offloaded in the market.;