Case: 1. SEBI, 2. In Re: 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 and Infra India Limited) and Temptation Foods Limited Vs Mr. Ravikant Choudhry. Securities and Exchange Board of India

Party Name1. SEBI, 2. In Re: 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 and Infra India Limited) and Temptation Foods Limited Vs Mr. Ravikant Choudhry
JudgesK.M. Abraham, Member
IssueCompany Law
Judgement DateNovember 24, 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), vide an ex-parte ad interim order dated June 4, 2009, in the matter of alleged manipulative trading in the shares 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, inter alia directed Mr. Ravikant Choudhry (hereinafter referred to as the noticee) not to buy, sell or deal in the securities market directly or indirectly, till further directions, for the reasons stated therein. Thereafter, the noticee, vide letter dated June 16, 2009 submitted his objections and while denying the allegations made against it in the said ex-parte order, inter alia stated that he cannot be faulted for merely receiving shares in an isolated off market deal of 10,000 shares of Bang Overseas Limited specially when no allegation of indulging in any synchronized deal by him was mentioned in the ex-parte order. According to him, there was no specific allegation in the said order. He stated that he had been wrongly and unjustly implicated in the ex-parte order as a connected client and that his only dealings were on National Stock Exchange of India Limited (NSE). He contended that, his name does not figure anywhere in the said order except for a reference to a receipt of 10,000 shares by him from Jay Investrade Private Limited (JIPL). He further stated that the said transaction was neither meant for any market obligation nor was a part of any overt or covert market manipulations. According to him, the said transfer was neither for the purpose of availing margin funding nor for pay-in obligation. He also stated that ingredients for prima facie satisfaction based on reasonable grounds are totally absent in his case. He claimed that he had taken a loan of Rs.3.10 crore from IL&FS Financial Services Limited (ILFS) and Rs.25 lakhs from Citicorp by pledging certain scrips which had nothing to do with the alleged five scrips. In view of the above submissions, the noticee requested that the exparte interim order to the extent it applied to him, be cancelled.

  2. As requested by the noticee, an opportunity of personal hearing was granted to him on July 21, 2009 wherein Mr. Rajendra Sing Baid Mehta, Advocate appeared on behalf of the noticee and made submissions. The noticee was also present during the hearing. The learned...

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