How to make jailed shell?
jailed shell means limited shell account for linux users. (as cpanel defination)
I don't use any control panel like cpanel.
There is a lot of documentation available for jail on the net. What you specifically need will depend on your specific linux distro and what you want to achieve exactly.
A good starting point might be http://rhcelinuxguide.wordpress.com/2006/07/02/linux-jail/ - first Google result for "jail linux".
A simple alternative to complex jail is assigning lshell to the concerned user(s).