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Bankim J. Shah v. Securities Exchange Board of India
The Board conducted investigations in the dealings in the scrip of the company for the period November 1, 1999 to March 30, 2000. During the investigation period one Aushim Khetrapal was the chairman and managing director of the company. The appellants were directors of the company during the relevant period. The scrip of the company registered a phenomenal increase from Rs. 7 on November 1, 1999 to Rs. 267.25 on March 31, 2000. According to the Board, the investigation pointed to publication of false/misleading information about the company by the directors which created artificial increase in the price of the scrip.
The case of the Board was that the appellants allegedly violated regulation 5 of the FUTP Regulations by way of publication of false and misleading information aimed at creating investor interest in the scrip leading to artificial increase in the price.
What Regulation 5 says? What was the decision of SAT?
Listen the Audio for all the details.
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