BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI

 Appeal No. 174 of 2012 

 Date of decision: 29.08.2012   

1. Chartered Capital and Investment Limited
   a company registered under the Companies
   Act, 1956 and having its registered office
   at 711, Mahakant, Opp.V.S. Hospital,
   Ellisbridge, Ahmedabad – 380 006.
2. Mohib Noman Khericha
   Managing Director of Appellant No.1, having his
   address at 711, Mahakant, Opp.V.S. Hospital,
   Ellisbridge, Ahmedabad – 380 006.
3. Manoj Kumar Ramrakhyani
   having his address at address at 711,
   Mahakant, Opp.V.S. Hospital,
   Ellisbridge, Ahmedabad – 380 006. … Appellants
   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. D. J. Khambatta, Senior Counsel along with Mr. Ravi Hegde and Mr. Paras Parekh,
   Advocate for Appellants.
   Mr. Shiraz Rustomjee, Senior Advocate along with Mr. Mihir Mody and Mr. Mobin
   Shaikh, Advocates for the Respondent.
   Coram : P. K. Malhotra, Member & Presiding Officer ( Offg .)
   S.S.N. Moorthy, Member
   Per : P. K. Malhotra (Oral) Securities and Exchange Board of Indi a (for short the Board) is carrying on
   investigations in the initial public offe r (IPO) of RDB Rasayans Limited. The 2
   investigations primarily focused on the verification of the di sclosures made in the offer
   documents, examination of bid pattern, examin ation of trading on first day of listing
   and utilization of IPO proceedings. The appe llants before us are the merchant bankers
   for the said IPO. During course of inve stigations, the Board came to a prima facie
   conclusion that there was lack of due dili gence on the part of the appellants in the
   handling of initial public offer, as a merchant banker. Therefore, the Board, vide its ex-
   parte ad-interim order dated December 28, 2011, restrained the appellants from taking
   up any new assignment or involvement in any new issue of capital including IPO,
   follow-on-issue, etc. from the securities market in any manner whatsoever, from the
   date of the impugned order till further directions. The said ex-parte ad-interim order was
   also treated as a show-cause notice and the appellants were given an opportunity to file
   their reply.
4. It is the case of the appellants that they have filed reply on January 14, 2012. A
   personal hearing was also granted on Ma rch 16, 2012 whereafter written submissions
   were filed on March 20, 2012. Although a period of more than five months have lapsed
   since grant of personal hearing, the re spondent-Board has not passed any order
   thereafter and the appellants are restrained from carrying out its activities under the ex-
   parte ad-interim order. It is stated by th e appellants that they have amply demonstrated
   that there is no mer it in the allegations against the appellants and the impugned order
   and the directions against the appellants are not required. Ap pellants, therefore, submit
   that the respondent’s action in not passing th e final order despite lapse of more than
   seven months calls for setting aside the impugned order.
5. Learned senior counsel for the Board st ates that the Board is still looking into
   the matter. However, it will pass necessa ry order after consid ering reply of the
   appellants within a period of two weeks.
6. After hearing learned senior counsel for the parties and having perused the
   record, we are of the view that the matter st ill being at the invest igation stage, it may
   not be appropriate for us to intervene in the matter at this stage. However, keeping in 3
   view the statement made by the learned senior counsel, we direct the Board to complete
   the investigation, qua the appe llants, within a period of tw o weeks from today. In case
   the Board is not able to pass appropriate orde r within the stipulated time, the ex-parte
   ad-interim order passed against the appellants shall stand vacated. We make it clear that
   we are not expressing any opinion on the merits of the case.
   The appeal stands disposed of with above directions.
   Sd/-
   P. K. Malhotra
   Member &
   Presiding Officer ( Offg.)
   Sd/-
   S.S.N. Moorthy
   Member

29.8.2012
Prepared and compared by-ddg