sebi:WTM/KMA/IVD/183/12/2009
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Facts / Headnote
Interim order directions confirmed; not revoked or modified, to continue till completion of investigation
Provisions invoked
- s. 11(4)
- s. 19
Holding
The directions issued vide the ex-parte interim order dated April 23, 2009 against the twenty parties are confirmed and shall continue till further directions, as the investigation is still in progress. The objections and submissions of the parties, made without supporting documents, are not sufficient to revoke or modify the interim directions at this stage.
Full text
Page 2 of 9 persons and that the order against them was neither preventive, remedial nor curative but penal in nature; b. that they had no link/connection/nexus/relation either with Mr. Nirmal Kotecha, promoters of PSTL, Mr. Amol Kokane or any other entities linked/connected with them; that the charges leveled against them were because of their fund transfers to M/s. R. S. Enterprises, which had transferred funds to M/s. Om Associates and that there were transactions between Om Associates and Amol Kokane; that they had not transferred any funds to M/s. R.S. Enterprises prior to September 1, 2008 and denied being aware of any fund transfers between R.S. Enterprises and Om Associates and between Om Associates and Mr. Amol Kokane;
Page 3 of 9 h. that they did not provide any funds to the entities with the intent of routing the funds in the stock market and that they had traded only in diamonds with R. S. Emterprises in the ordinary course of business.
Page 4 of 9 Trading Company (P) Limited, vide letter dated July 2, 2009, while making similar submissions as the others, had inter alia stated that it was not in any way connected with any of the entities as mentioned in the interim order. It stated that its main business activity was trading in diamonds and investment in securities. It further submitted that it had applied for 50,000 equity shares at the rate of Rs.10/- of Nirman Management Services Private Limited (hereinafter referred to as Nirman) on private placement during March 2008. It claimed that it had issued (on March 28, 2008) a cheque for Rs.50,00,000/- [it has to be 5,00,000 only as it had applied for 50,000 shares at Rs.10/- each] towards the purchase amount of the said 50,000 shares. It further claimed that since the allotment was not made, an amount of Rs.50,00,000/- was refunded (on July 16, 2008) by Nirman and that this genuine transaction was termed as “suspicious banking transaction” by SEBI. It was submitted that the transactions between itself and Nirman took place prior to September 16, 2008 when the alleged trades by Mr. Amol Kokane took place. It was submitted that, since the application money was refunded by Nirman, the question of its being misutilized for the fraudulent activities by Mr. Nirmal Kotecha or others would not arise. Similar objections and submissions were filed by Hema Trading Company Private Limited vide its undated letter (received by SEBI on July 10, 2009). Kush Hindustan Entertai
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Source: SecMarx — sebi:WTM/KMA/IVD/183/12/2009. 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.