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1. The appellant company is aggrieved by the respondent's order dated 16-2-2000, debarring it from accessing capital market for a period of 5 years. The order is issued under regulation 11 of the Securities & Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 1995.

2. The appellant company was originally incorporated as a private limited company on 2-11-1993, and subsequently converted into a public limited company on 31-3-1995. In January, 1996 the appellant-company issued 23 lakhs equity shares of Rs. 10 each. Out of the said 23 lakhs shares 17.80 lakhs were issued to the public. The remaining 5.20 lakhs shares were reserved for allotment to the promoters, directors, their friends, relatives and associates. The public issues opened for subscription on 8-1-1996 was closed on 10-1-1996 as the issue was overwhelmingly over subscribed. Shares were listed on the Ahmedabad Stock Exchange (ASE) on 26-3-1996. It was reported that there was substantial variation in the collection figures of the public issue as per the 3 days report and the final report submitted by the lead manager of the issue. Further, unusual movements, in the share prices and volumes traded in the scrip not based on any economic fundamentals were witnessed at ASE. The shares which were listed at Rs. 41 per share had gone up to Rs. 60 on 9-5-1996. Intraday volatility was also reported high on certain days, e.g., on 23-4-1996 price movement was found in the range of Rs. 38 to Rs. 53. Trading in the scrip on ASE, attributing to volatility, was suspended on 16-5-1996. the respondent had, in the meantime, decided to "investigate into the affairs relating to dealings in the shares in respect of the public issue of the company by Tirupati Finlease Ltd., and other intermediaries/persons associated with public issue and into the irregularities of price rigging and market manipulations in the said scrip which is violative of the provisions of SEBI (prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 1995," Investigations lead to the conclusion that the promoters had indulged in unfair and fraudulent trade practices in dealing in the shares. Artificial scarcity was made by withholding 7,24,800 shares from the market, resulting in illiquidity in the shares, which in turn resulted in volatility in prices. Based on this finding, invoking Regulation 11, the appellant was, debarred from accessing capital market for a period of 5 years.