Sebi to carry out detailed probe in Gitanjali Gems case

Sebi will conduct a detailed probe into the role of Choksi group and other promoter entities of Gitanjali Gems in the matter of alleged irregularities in the trading of the company shares.
Citing that no formal investigation has been conducted by the regulator into the matter, which pertains to alleged manipulations dating back to 2011-12 period, Sebi Whole Time Member S Raman said a probe is needed to find out the role played by Choksi group and promoter entities.
To conclude the matter expeditiously, Raman said the Securities and Exchange Board of India (Sebi) should look to complete the investigation within six months.

In his 29-page order, he said that no formal investigation was conducted by the regulator to verify the claims and counter claims made by the promoters of Gitanjali Gems vis -a-vis Manoj Vankar regarding their roles within the company.
Vankar was a former official of Gitanjali Gems.
"This is a fit case for investigation and Sebi should employ all the investigative powers entrusted to it to unearth the entire truth and to find out the role of alleged Choksi Group entities vis-a-vis the promoter entities of Gitanjali Gems," Raman said.

Following a market alert, a prima facie examination of the trading in Gitanjali Gems shares for the period from July 18, 2011 to January 25, 2012 was done by Sebi.

Subsequently, the regulator had issued show-cause notices to various entities.
During the period concerned, Sebi found that Choksi Group dominated the trading with gross market volumes of 25.70 per and 20.52 per cent in cash and derivative segments, respectively.
An analysis of the Know Your Client (KYC) documents, bank, financial statements of Choksi Group who traded or funded certain transactions in Gitanjali Gems shares revealed Choksi Group with the promoter entities through common phone numbers, residential address, electronic mail, and inter se transfer of funds.