sebi:WTM/KMA/IVD/268/06/2010
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Facts / Headnote
Confirmed ex-parte interim directions dated April 23, 2009; request for revocation rejected
Provisions invoked
- s. 11(4)
- s. 19
Regulations
- Reg. 11
- Reg. 3(1)
Parties
- Mr. P.S. Saminathan
Holding
The ex-parte interim directions issued against Mr. P.S. Saminathan vide Order dated April 23, 2009 restraining him from dealing in securities are confirmed and continued pending investigation.
Full text
Page 2 of 11 Associates, Chartered Accountants and Mr. S. R. Sundar, Advocate (M/s. Kasturi & Sundar Associates) appeared on behalf of Mr. P.S. Saminathan and made submissions. Mr. P.S. Saminathan was also present in the hearing. Written submissions were also filed during the hearing.
Page 3 of 11 inter alia mentioned that Mr. P.S. Saminathan had made certain corporate announcements which were prima facie misleading in nature, just prior to the issuance of the purported SEBI letters. The said Order also stated that PSTL, vide letter dated June 20, 2008 had informed the stock exchanges (National Stock Exchange of India Limited and Bombay Stock Exchange Limited) that Mr. P.S. Saminathan had purchased 13,70,000 equity shares of PSTL, representing 4.845% of its paid-up capital, from Mr. Nirmal Kotecha. The above transaction was done through the stock broker, Keynote Capital Limited (hereinafter referred as Keynote) in the form of a cross deal and the trade was executed at a price of Rs.250/- per share. The total value of the said sale was Rs.34.25 crore. Mr. Nirmal Kotecha had requested Keynote to transfer the credit of Rs.34 crore lying in his trading account with Keynote on account of sale of shares on June 20, 2008 to the account of Mr. P.S. Saminathan by debiting his account with Rs.34 crore as per his mutual understanding with Mr. P.S. Saminathan. It is seen from the client ledger provided by Keynote that the money was not actually received in Mr. Nirmal Kotecha’s account and that only a ledger entry was passed in the books for transferring an amount of Rs.33,99,04,292.28/- (i.e. credit lying in Mr. Nirmal Kotecha’s account after adjusting the debit accumulated in his account of Rs.1,57,837.24/-) towards the balance transferred to Mr. P.S. Saminathan’s ac
Page 4 of 11 of shares as on the date of the transaction and that only book entries had been made by Keynote on the basis of a letter from Mr. Nirmal Kotecha.
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Source: SecMarx — sebi:WTM/KMA/IVD/268/06/2010. 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.