BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Appeal No. 150 of 2011
Date of decision: 19.9.2011 P. R. Vyapaar Ltd.
29-A, Weston Street, 3rd Floor,
Room No. C-5, Kolkata – 700012.
……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. Vinay Chauhan and Mr. Anant
Upadhyay, Advocates for the Appellant.
Mr. Shiraz Rustomjee, Senior 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 order will dispose of thr ee Appeals no. 149 to 151 of 2011 all of
which are directed against the common order dated July 19, 2011 passed by the
whole time member of the Securities and Exchange Board of India (for short the
Board) confirming the ad-interim ex-p arte order dated December 2, 2010 by
which the appellants, among others, had been restrained from accessing the
securities market and were prohibited from buying, selling or dealing in securities
till further directions. Admittedly, the investigations in the matter are still on and
the Board found that the scrip of five co mpanies had been manipulated and that a
large number of entities had joined hands together in the manipulation. The
learned counsel appearing for the appellants have strenuously contended that their
clients are similarly situated to the two entities referred to in para 28(b) of the
impugned order against whom the ad interim directions have been revoked. They
have taken us through the impugned order a nd also the ad interim ex-parte order
2
which was treated as a show cause not ice against the entities. Since the
investigations are still pe nding, it may not be appropriate for us to examine the
merits of the contentions now sought to be urged before us. We are informed that
the investigations are in progress. In th is view of the matter, we dispose of the
appeals with a direction to the Board to conclude the investigations expeditiously
and, in any case, before the end of this year. It will be open to the Board to
proceed against different entities in acco rdance with law on the basis of the
findings as recorded in the investigations.
- The learned counsel for the appellants have pointed out that their clients
are investment companies and are holding shares of a large number of companies
by way of investment and that in view of the falling market they may be allowed
to dispose of some of the scrips with a view to reduce their losses. The prayer
appears to be reasonable. We, therefore, direct that the appellants may sell some
of the scrips which they ar e presently holding to safeguard against the erosion in
the value of their portfolio. The details of the sales shall be furnished to the
Board within 24 hours and the sale proceeds shall be kept in a separate escrow
account. In case the appellant s wish to deal with the sale proceeds, they shall
seek the permission of the Board which s hould be considered within a reasonable
time. No costs. Sd/-
Justice N. K. Sodhi
Presiding Officer
Sd/-
P. K. Malhotra
Member
Sd/-
S. S. N. Moorthy
Member
19.9.2011
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