BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Appeal No. 146 of 2011
Date of Decision : 12.09.2011
Ashika Stock Broking Limited
Registered & Corporate office:
1008, Raheja Centre, 10th Floor,
214, Nariman Point,
Mumbai – 400 021.
And
Head office:
Trinity 226/1, A.J. C Bose Road,
7th Floor, Kolkata – 700 020.
…Appellant
Versus
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai – 400 051.
…Respondent
Mr. Janak Dwarkadas, Senior Advocate with Mr. Zal Andhyarujina,
Mr. Nishit Dhruva and Ms. Dhwani Mehta, Advocates for the Appellant.
Mr. Shiraz Rustomjee, Advocate with Ms. Daya Gupta and Ms. Harshada Nagare,
Advocates for the Respondent.
CORAM : Justice N.K. Sodhi, Presiding Officer
P.K. Malhotra, Member
S.S.N. Moorthy, Member
Per : Justice N.K. Sodhi, Presiding Officer (Oral)
This appeal is directed against th e order dated July 19, 2011 passed by the
whole time member modifying the ad-inter im ex-parte order issued against the
appellant. By an ex-parte order date d December 2, 2010, the appellant which is a
stock broker had been restrained from taking new clients and for executing
proprietary trades pending investigations. The investigations are still going on. By the
impugned order, the whole time member has modified his earlier order and allowed
the appellant to take on fresh clients but the restraint order regarding proprietary
trades is continuing. During the course of the hearing, the a ppellant states that it is
willing to furnish an undertaking in writing to the respondent Board that it shall not
2
buy, sell or deal in securities on its own / proprietary account pending further orders
in the proceedings before the Board. If su ch an undertaking is furnished within a
week from today, the directi on issued to the appellant in paragraph 28(c) of the
impugned order shall stand vacated. This course is being adopted having regard to the
peculiar facts and circumstances of the present case. The Board is directed to
conclude the investigations expeditiously. It is made clear that the furnishing of the
undertaking and the acceptance thereof by the respondent Board shall be without
prejudice to the rights of the parties. The learned se nior counsel appearing for the
appellant informs us that his client is holding some shares as margin and that if a need
arises to dispose of those shares, liberty may be reserved to the appellant to apply in
that regard. Liberty as prayed for.
The appeal stands disposed of as above with no order as to costs.
Sd/-
Justice N.K. Sodhi
Presiding Officer
Sd/-
P.K. Malhotra
Member
Sd/-
S.S.N. Moorthy
Member 12.09.2011
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