sebi:WTM/PS/ISD/02/2011

SEBI · SEBI · 2009-01-01 · Prashant Saran, Whole-Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Interim ex-parte order barring Pan Asia Advisors Ltd and Mr. Arun Panchariya from rendering services in connection with securities in the Indian market; directing registered intermediaries not to deal with them; prohibiting listed entities (Sub-Accounts, FII, Group members) from dealing in securities; and directing certain companies not to issue equity or alter capital structure until further directions.

Provisions invoked

• s. 19
• s. 12A

Regulations

• Reg. 3(b)
• Reg. 7A
• Reg. 3(a)(b)(c)
• Reg. 13A(1)
• Reg. 13A

Holding

SEBI found prima facie evidence of pre-arranged trading between FII/Sub-Accounts and connected Group entities in six scrips with structured GDR issues, and passed interim ex-parte orders barring Pan Asia Advisors Ltd, Mr. Arun Panchariya, the Sub-Accounts, the FII, and Group entities from dealing in securities, and directing certain companies not to alter their capital structure.

Full text

2 Companies FII/Sub-Accounts/Sellers (Sub- Accounts) Indian Clients acting as major counterparties/Buyers (Group) • Asahi Infrastructure & Projects Ltd (Asahi) • IKF Technologies Ltd. (Ikf) • Avon Corporation Limited (Avon) • K Sera Sera Ltd (KSera) • CAT Technologies Ltd (Cat) • Maars Software International Ltd.(Maars) • India Focus Cardinal Fund (India Focus) • KII Ltd (KII) • Mavi Investment Fund (Mavi) • Sophia Growth (Sophia) • Alka India Ltd (Alka) • Basmati Securities (Basmati) • S V Enterprises (SV) • JMP Securities (JMP) • Oudh Finance & Investments Ltd (Oudh)

3 Sr. no Asahi Avon CAT IKF KSERA Maars Accounts 12 Concentration of Sub-Accounts (Net) to market volume on days they have traded (i.e. 8) 53.41% 38.75% 30.86% 34.03% 18.51% 33.16% 13 No. of days when Group Members have traded 161 181 233 170 326 139 14 Avg Daily market volume on no. of Days in (13) 1,028,545 604,388 308,674 1,514,773 1,158,053 839,421 15 No. of Times Avg daily volume with Group vis-à-vis without them (14)/(4) 27.85 5.13 2.99 4.04 4.85 9.57 16 Total Purchase by Group 61,019,672 37,630,478 25,484,352 79,905,100 99,394,656 39,075,735 17 Total Sale by Group 54,531,543 37,781,778 23,436,576 63,322,661 98,385,183 43,390,415 18 Concentration of Group (gross) to market volume on days they have traded (i.e. 13) 34.90% 34.47% 34.10% 27.81% 26.20% 35.34% 19 No. of Shares sold by Sub- Accounts matching to buy of Group members 19,713,709 7,905,709 1,219,641 14,835,662 14,054,743 7,099,356 20 % of shares matching between Group and Sub-Accounts to total sell by Sub-Accounts [%(19)/(11)] 62.05% 56.24% 32.48% 75.66% 48.26% 46.65%

4
During the days the Group has traded its total trading is nearly 1/3rd of the total trading in the scrip on a gross basis.

Source: SecMarx — sebi:WTM/PS/ISD/02/2011. 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.