sebi:WTM/RKA/ISD/51/2013
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Facts / Headnote
Ad-interim ex-parte order dated February 15, 2013 revoked; directions need not continue during pendency of investigation
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 3
Parties
- Aventis
- Betul Oils
- Betul Minerals
- Moebius
- Navinya
- Shreyans
- Sunmate
- Uni24
- Vision
Holding
The Whole Time Member revoked the ad-interim ex-parte directions issued against the noticees on February 15, 2013, holding that the balance of convenience favoured the noticees and no emergent or urgent reasons existed to continue the directions during the pendency of the investigation.
Full text
Page 2 of 9 further prohibited them from buying, selling or dealing in securities, in any manner whatsoever, till further directions.
Page 3 of 9 (iv) As per Navinya, its registered office address is '207-208, 2nd Floor, Ashok Tower, Tower -C, Dr. S.S. Rao Road, Parel' and not '117, Mittal Chambers, Nariman Point, Mumbai' as alleged in the interim order. In support of their above claim, these entities have also submitted copies of the Form 18 submitted by them to the Registrar of Companies (RoC) with regard to change in their respective addresses. (d). As regards the common address of few directors of Sunmate, Navinya, Moebius and Uni24, for determining the connection amongst them as alleged in the interim order, Sunmate, Navinya, Moebius and Uni24 have denied the same and have submitted that on the trading day, Ms. Kanchan Daga was not on the board of Sunmate and Ms. Deepali Daga was not on the board of Navinya. (e). Shreyans has submitted that with effect from March 14, 2011, Mr. Nilaykumar Daga has ceased to be its director and on the trading day he was not its director. (f). Vision, Aventis, Sunmate, Shreyans, Navinya and Betul Oils have denied that the phone number '9821994534' belongs to them. According to them, said phone number may be of the introducer. Betul Minerals has admitted that the said phone number belongs to it. (g). The said noticees have denied any role in the trades by each other. As per these noticees, the fund transfers amongst them, as alleged in Para 6 of the interim order, were in the ordinary course of business and no adverse inference of relationship can be drawn on this basis. (
Page 4 of 9 removed from the derivatives segment. Therefore, they had no option but to buy the shares and to quote a higher price so as to attract the sellers. They never intend to indulge in manipulative trading and they only wanted to avoid loss that could occur to them as the trading day was the last day for futures contracts in this scrip. They have further submitted that it is undisputed fact that they had taken delivery of the shares bought by them on the trading day and are still holding them. This is against the purported theory of indulging in price rigging and making unlawful gains as no one will manipulate the price of shares to hold shares whose price is manipulated. (k). Moebius has submitted that it was not holding any position in the futures of Ruchi Soya as on the trading day. Vision has also stated that it was also not holding any long position in the futures of this scrip rather it was holding short position of 3.92 lac shares in the futures of this scrip as on the trading day. Therefore, there is no question of inflating the settlement price of this scrip in order to gain on long positions in futures as alleged in the interim order. (l). While Betul Oils and Betul Minerals have admitted that they were holding long positions in futures, they have contended that in the absence of any trading by them in the cash market, the issue of manipulating the settlement price on the trading day does not arise. (m). Aventis, Moebius, Shreyans and Sunmate submitted that a
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Source: SecMarx — sebi:WTM/RKA/ISD/51/2013. 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.