sebi:15032

SEBI · SEBI · 2006-01-24 · V. K. Chopra, Whole Time Member

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Facts / Headnote

Ad-interim ex-parte order dated January 24, 2006 against Jupiter Securities and Properties Pvt. Ltd. vacated

Provisions invoked

• s. 11B
• s. 11(4)
• s. 19

Parties

• Jupiter Securities and Properties Pvt. Ltd.
• Millennium Cybertech Ltd

Holding

The ad-interim ex-parte order dated January 24, 2006 restraining Jupiter Securities and Properties Pvt. Ltd. from buying, selling or dealing in securities of MCL is vacated, pending investigation.

Full text

FOR COMPANIES: Shri. Bharat Bindal, Promoter, Jupiter Securities and Properties Pvt. Ltd. Shri. Ashok Mehta, Consultant, Jupiter Securities and Properties Pvt. Ltd. FOR SEBI Mrs Barnali Mukherjee, DGM, SEBI Shri. Vir Sahab Singh , Manager, SEBI Shri. Mohamed Rahaz. P.M, Legal Officer, SEBI

1.2 There was a direction against the promoters of MCL, PCBs, Stock Brokers and Clients restraining them from buying, selling or dealing in the securities of MCL directly or indirectly till further direction. Now, the issue before us is to consider as to whether the said interim order against one of the PCB namely Jupiter Securities and Properties Pvt. Ltd. (hereinafter referred to in short as JSPPL) can be vacated or not, pending investigation. 1.3 The name of JSPPL appeared among the PCBs category in the aforesaid interim order dated January 24, 2006 wherein it is mentioned that JSPPL was holding 168900 shares (3.38% – face value Rs 10/-) of MCL as on September 30, 2004. It is also mentioned that its holding declined to 101600 shares (2.03% - face value Rs 10/-) as on September 30, 2005. During the course of investigation, JSPPL was asked to clarify the above change in shareholding which ultimately culminated into the filing of objection to the aforesaid interim order. 2.0 OBJECTION OF JSPPL AGAINST THE AFORESAID INTERIM ORDER DATED JANUARY 24, 2006 AND PERSONAL HEARING 2.1 In the aforesaid ad-interim order dated January 24, 2006, 15 days time from the date of the order was given to the entities against whom the said interim order has been passed. JSPPL whose name appeared among the PCBs in the said

2.2 During the course of hearing, the representative of JSPPL explained the reason for delay in filing the objection to get the said interim order vacated. They stated that they have not received the copy of the aforesaid order and they only came to know of the said interim order in the month of March 2006 when the Corporation Finance Department of SEBI inquired from Brahma Interactive Ltd about the investigation in MCL where the name of JSPPL had also appeared. JSPPL stated that it was not holding the shares of MCL after January 06, 2004 and as such genuinely believed that the said interim order is not applicable to them. However, the investigating authority had sought details of their shareholdings in MCL which culminated into the filing of the objection against the aforesaid interim order. In view of what is expressed hereinabove, delay in filing the objection to the aforesaid interim order is accepted. 2.3 In the said objection, JSPPL inter-alia submitted that it was holding 609900 shares before December 16, 2002 and in between December 16, 2002 and January 06, 2004, it sold its entire share holding through off market to 3 entities viz. Avinash Finlease Private Limited (2,92,300 shares), Mutual Impex Pvt. Ltd. (3,08,600 shares) and Fast Track Securities Pvt. Ltd. (9,000 shares). 2.4 JSPPL also stated that they have furnished detailed information to SEBI on September 28, 2006 giving substantial evidence like copies of bank statements, personal accounts, books of account of

Source: SecMarx — sebi:15032. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.