sebi:WTM/PS/ISD/55/JAN/2012
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Facts / Headnote
Interim directions issued vide ad interim ex-parte Order dated September 21, 2011 against Pan Asia Advisors Limited and Mr. Arun Panchariya confirmed; investigation to be completed expeditiously.
Provisions invoked
- s. 19
- s. 12A
- s. 12
Regulations
- Reg. 3(b)
Parties
- Pan Asia Advisors Limited
- Mr. Arun Panchariya
Holding
SEBI has jurisdiction to issue directions under Sections 11(4) and 11B of the SEBI Act against Pan Asia Advisors Limited and Mr. Arun Panchariya in connection with alleged market manipulation using GDR issues, and the interim directions dated September 21, 2011 are confirmed.
Full text
Page 2 of 16 represented by Mr. Somasekar Sunderasan, Advocate, who made submissions. He further sought time till December 5, 2011 for filing written submission. When the Honourable Tribunal’s Order directing SEBI to pass an Order in the matter within a specified time was brought to the notice of the counsel, he submitted that his client would approach the Honourable Tribunal for seeking extension of time for passing an
Page 3 of 16 subscribing investors or the actual motives of the promoters or directors of the companies issuing them. The preliminary investigation in the matter found, from the information submitted by the aforesaid issuer companies that Pan Asia was the manager or arranger to each of the issues(except one) and that the proceeds of the GDR issues were deposited in European American Investment Bank AG, Austria (Euram Bank). The Order had also observed that a repetitive pattern emerged from the examination that the same set of sub-accounts were selling most of their holdings to the same set of counter parties, a common bank where the GDR proceeds were deposited and that these GDR issues (except in the case of Cals Refineries Limited) were managed/arranged by Pan Asia. The preliminary investigation also found that Mr. Arun Panchariya is the founder and owner of Pan Asia. The Order had inter alia observed
Page 4 of 16 Further, prima facie, Group members acting as major counterparties to sell orders of India Focus are also connected to Arun Panchariya. 78. ........................ The repetitive acts of Mr. Arun Panchariya and Panasia of facilitating issue of GDRs for the prima facie purpose of selling the GDRs in the Indian market through matched and synchronised trades thereby misleading Indian investors, is a prima facie violation of Section 12A (a), (b) and (c) of SEBI Act, 1992 read with Regulation 3(b) (c) & (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market), Regulations, 2003.”
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Source: SecMarx — sebi:WTM/PS/ISD/55/JAN/2012. 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.