sebi:WTM/RKA/ISD/63/2012

SEBI · SEBI · 2012-08-03 · Rajeev Kumar Agarwal, Whole Time Member

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Facts / Headnote

Directions issued against the noticee vide the ad interim ex-parte order dated August 03, 2012 revoked

Provisions invoked

• s. 19

Parties

• M/s Milestone Shares and Stock Broking Private Limited

Holding

The directions issued against M/s Milestone Shares and Stock Broking Pvt. Ltd. vide the ad interim ex-parte order dated August 03, 2012 are revoked. The order is without prejudice to any enforcement action SEBI may take upon completion of the investigation.

Full text

Page 2 of 7 2. In the above background, SEBI, vide an ad interim ex-parte order dated August 03, 2012, amongst others, restrained M/s Milestone Shares and Stock Broking Private Limited ('noticee') from accessing the securities market and further prohibited it from buying, selling or dealing in securities in any manner whatsoever, till further directions.

Page 3 of 7 for 50,000 shares when the price of the scrip was falling. The noticee has further submitted that the fact of purchase of 50,000 shares of Pipavav during the morning (i.e. during the price fall period as set out in the order) is antithesis to the allegation that noticee is part of any price depressing exercise in the scrip. (g) Guiness had sold 1, 20,000 shares of Pipavav on July 26, 2012 due to margin shortfall in noticee's account out of which allegedly 50,000 shares of noticee matched with the buy trade of Neelanchal. Noticee has further submitted that this trade had allegedly matched after a gap of about an hour and forty five minutes, therefore, nothing ulterior should be read into such matching. (h) Additionally, noticee submitted that due to price fall and volatility in the scrip Pipavav, their 120,000 shares held by it were liquidated as a result of margin shortfall and the same has caused a huge loss to them. Noticee has contended that if it was related to entities who were interested in depressing the price, it would not have bought the shares in the morning at higher prices only to get the shares liquidated at lower prices. Noticee submitted they are victims of price fall and not the other way round as implied in the interim order. Noticee has submitted a copy of the contract notes from its broker Guiness for the trades on July, 26, 2012. (i) With regard to its relation with other entities as mentioned in Para 17 & 18 of

Page 4 of 7 statements of its accounts for the months of July, 2011 and November, 2011 from MOSL which bears the correct phone no. i.e. 8820113433.  The email ID ashok@steptwo.in as mentioned in the interim order belongs to Mr. Ashok Kumar Sharma, Chartered Accountant of the Neelanchal. The Annual Return of the Neelanchal for the year ended March 31, 2011 was filed with MCA by Mr. Ashok Kumar Sharma in his professional capacity and thus drawing any relationship on that basis is not appropriate.  Noticee has furnished a confirmation letter dated November 08, 2011 from Mr Ashok Kumar Sharma that he is involved with the Neelanchal in his professional capacity and he does not have any business relationship with it.  As per the MCA portal the registered office address of Step Two Corporation Ltd is 21, Hemanta Basu Sarani, 5th floor, room No. 507, PS Hare Street, Kolkotta, West Bengal, 700 013 and not C/o. Ms. Finflow Investment Pvt. Ltd., A-206 Phoenix house, 2nd Floor, Senapati Bapatmarg, Lower parel, Mumbai - 13 as alleged in the order. Thus, the observation that Umang Nemani and Step Two Corporation Ltd. are connected and therefore Neelanchal is related to the Umang Nemani and further noticee is related to Umang Nemani is erroneous.  Therefore, entire basis of clubbing the noticee with other entities mentioned in the interim order is fallacious.

Source: SecMarx — sebi:WTM/RKA/ISD/63/2012. 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.