BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI

Misc. Application No. 120 of 2011
And
Appeal No. 222 of 2011

              Date of decision: 17.2.2012     

Mr. Deepak Thakkar
305-B, Vicky Apartments, P. Baloo Marg,
Prabhadevi,
Mumbai-400 025

                                     ……Appellant 

Versus

Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra Kurla Complex, Bandra (E)
Mumbai- 400 051

                                …… Respondent 

Mr. Zal Andhyarujina, Advocate with Ms. Duhita Lewis, Ms. Akshaya Bhansal and Ms.
Pragati Shetty, Advocates for the Appellant.
Mr. Kumar Desai, Advocate with Ms. Harshada Nagare, Advocate for the Respondent.
CORAM : P.K. Malhotra, Member
S.S.N. Moorthy, Member
Per : P.K. Malhotra, Member (Oral)

This appeal is directed against th e order dated January 28, 2010 passed by the
whole time member of the Securities and Exchange Board of India (for short the Board)
confirming the ex parte ad interim order da ted April 23, 2009 in the matter of Pyramid
Saimira Theatre Limited (the company). The ex parte order was pa ssed restraining the
appellant and a few other entities from accessing the securities market till further
directions.

2. We have heard learned counsel for the parties for some time. The alleged role of
   the appellant in manipulating the scrip of the company is discussed in paragraph 5 of
   the impugned order. After passing of the impugned order, the appellant was granted
   personal hearing. The appellant appeared be fore the whole time member and also
   submitted the required details. It is the case of the appellant that he is out of the 2
   securities market for almost three year s under the interim order of the Board. The
   investigation qua the appellant was also concluded in July 2010 and the Board has not
   yet passed any final order in the matter. Pursuant to the impugned order, the National
   Securities Depository Limited (NSDL) ha d frozen demat accounts of the appellant
   which contained shares of various companie s, both, listed and unlisted. By his letter
   dated October 5, 2011, addressed to the NSDL , a copy of which was endorsed to the
   Board, the appellant sought permission to rematerialize or surrender 40,000 shares of
   Speedy Multimodes Limited, an unlisted company, lying in his demat account. NSDL
   has not yet responded to his request. However, learned counsel for the appellant Board
   has placed on record, copy of the letter dated January 25, 2012 issued by the Board
   whereby request of the appellant, as contai ned in the letter dated October 5, 2011, has
   been rejected. He has also placed on reco rd a copy of the show cause notice dated
   January 20, 2012 which has been issued in pursuance of the investigation carried out by
   the Board. It was also submitted by him that the Board is likely to issue another show
   cause notice to the appellant within a pe riod of two weeks under Section 11 & 11B of
   the Securities and Exchange Board of Indi a Act, 1992. He, therefore submits that no
   interference by the Tribunal is called for at this stage.
3. Since the Board has already issued one show cause notice and is in the process
   of issuing second show cause notice, we are not inclined to intervene at this stage in so
   far as the impugned order dated January 28, 2010 is concerned. In so far as prayer of the
   appellant for disposal of the shares of unlisted company as contained in his letter dated
   October 5, 2011 is concerned, we feel that the request is reasonable. We say so, because
   the impugned order was passed almost three year s back and the appellant is out of the
   market during all this period. Learned counsel for the appellant, on instructions, states
   that in case an adverse order is passed by the Board against him and the amount is
   required in the satisfaction in the orders that may be pa ssed, the appellant undertakes
   that the amount of sale proceeds will be made available to the Board. The appellant will
   furnish details of the shares being disposed of, the price at which they were purchased, 3
   sale price and the person to whom the shares are being sold. This information shall be
   provided to the Board within one week from today.
   The appeal stands disposed of as above with no order as to costs. Accordingly
   the Miscellaneous Application also stands disposed of. Sd/- P.K.Malhotra Member

Sd/-
S.S.N. Moorthy
Member
17.2.2012
Prepared & Compared By: Pk