Case: 1. SEBI, 2. In Re: Scrips of Cals Refineries Limited and Ors. Vs Alosha Vanijya Private Limited and its Director Mr. Rajendra Kumar Agarwal. Securities and Exchange Board of India

Party Name1. SEBI, 2. In Re: Scrips of Cals Refineries Limited and Ors. Vs Alosha Vanijya Private Limited and its Director Mr. Rajendra Kumar Agarwal
JudgesK.M. Abraham, Member
IssueCompany Law
Judgement DateDecember 31, 2009
CourtSecurities and Exchange Board of India

Order:

K.M. Abraham, Member

  1. The Securities and Exchange Board of India (hereinafter referred to as SEBI), in the matter of alleged manipulative trading in the scrips of Cals Refineries Limited, Confidence Petroleum India Limited, Bang Overseas Limited, Shree Precoated Steels Limited (Now known as Ajmera Realty & Infra India Limited) and Temptation Foods Limited, vide an ex-parte ad interim order dated June 4, 2009 (hereinafter referred to as the Order) inter alia directed Alosha Vanijya Private Limited and its director, Mr. Rajendra Kumar Agarwal not to buy, sell or deal in the securities market directly or indirectly, till further directions as they were prima facie found to have played a key role in the alleged manipulation. Thereafter, Alosha Vanijya Private Limited, vide letter dated June 18, 2009 inter alia stated that:

    i. the directions passed against it are unwarranted in the facts and circumstances of the case.

    ii. though, it had desired to subscribe to the warrants of Maruti Securities Limited (MSL), the said preferential issue did not take place and they were not allotted any warrant. According to it, except for making an application for subscription it does not have any link/connection with either the company, MSL or other preferential allottees for trading in the shares of the companies mentioned in the Order. It has denied MSL's contention that the non promoter preferential allottees were introduced by its director Mr. Rajendra Kumar Agarwal.

    iii. its trading in the shares of Bang Overseas Limited, Shree Percolated Steels Limited, Confidence Petroleum India Limited and Temptation Foods Limited were negligible. It further contended that its trades have been wrongly clubbed with other entities to draw negative inference. It had not executed any off market transactions in the five scrips during the investigation period.

    iv. it was holding 5,00,000 shares of Temptation Foods Limited even before the investigation period.

    v. the synchronized transactions were isolated transactions spread over a long period of time. It also contended that at the time of transactions, it was not privy and had no knowledge of any counter party of its trades.

    vi. it had made a profit of Rs. 32,48,997/- and Rs. 1,67,685/- from its trading in the shares of Confidence Petroleum India Limited and Bang Overseas Limited, respectively.

    vii. the telephone number '9246206200' appearing in the UCC records, was not belonging to it and that it appears to be a...

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