Under Sections 11, 11(4) and 11B of the Securities and Exchange Board of India Act, 1992 read with Regulation 11(1) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, in the matter of Pine Animation Limited.
1. Securities and Exchange Board of India (SEBI) conducted an examination into the dealings in the scrip of Pine Animation Limited (PAL) on BSE Limited (BSE) during the period from May 22, 2013 to January 30, 2015 as there was huge rise in the traded volume and price of the scrip.
2. Upon preliminary inquiry, SEBI prima facie observed the following: PAL made preferential issue of equity shares of around Rs.24.7 crores to 92 entities during 2012-13. These shares were locked-in for a period of one year; After the release of compulsory lock-in period, the Preferential Allottees and the Promoter related entities (i.e. entities to whom PALs Promoters transferred their shares in physical form) were provided exit at a high price by the entities allegedly related/connected amongst themselves and with PAL ("Exit Providers"); By virtue of the same, it was alleged that the company and persons in charge of its affairs created preferential allotment of shares as a mode to provide fictitious long term capital gains ("LTCG") to its Preferential Allottees and Promoter related entities so as to convert their unaccounted income into accounted one; its Promoters/Directors Exit Providers, Preferential Allottees and the Promoter related entities artificially increased the volume and price of the scrip and misused securities market system for making illegal gains and to convert ill-gotten gains into genuine one to avail LTCG.
3. As the aforesaid activities of PAL and its Promoter/Directors, Promoter related entities Preferential Allottees, Exit Providers, LTP Contributors were in violation of SEBI Act, 1992 (SEBI Act), Securities Contracts (Regulation) Act, 1956 (SCRA), and SEBI (Prohibition __________________________________________________________________________ Order in the matter of Pine Animation Limited of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (PFUTP Regulations) SEBI passed an Ad interim ex-parte order dated May 08, 2015 (hereinafter referred to as interim order) and restrained 178 entities including PAL and its Promoters and Directors from accessing the securities market and further prohibited them from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever, till further directions.
4. The name of the entities against whom the interim order were passed are as follows: S.NO. PAN NAME
1 AAECM0267A PINE ANIMATION LTD. DIRECTORS OF PINE ANIMATION LTD.
2 AMCPR0635A Deepak Prakash Rane
3 AAJPM6827G Krishnakumar Omprakash Murarka
4 AAPPYO422P Lalji Ramraj Yadav
5 AOMPP1671C Mandar Subhash Palav
6 AABPN3336R Nagaraja Sharma Rajagopalan
7 AJZPJ7049J Nirmal Pragjibhai Jodhani
8 APUPP9069B Priyesh Prakash Pethe
9 BMKPK5626B Santosh Kumar PROMOTERS OF PINE ANIMATION LTD.
10 AABCF0975D First Entertainment Private Limited
11 AAACU9294K Unique Image Production Pvt. Ltd. DIRECTORS OF FIRST ENTERTAINMENT PVT. LTD. AND UNIQUE IMAGE PRODUCTION PVT. LTD.
12 AEZPM6900L Murali Shanmugam
13 ARUPP1577G Prabu Sekar
14 ADRPV2013N Sekar Vasu PROMOTER RELATED ENTITIES
15 AAECG2103R Gajakarna Trading Pvt Ltd
16 AAHCM1333N Mahaganapati Financial Services Pvt Ltd
17 AAFPJ6734M Nimesh S Joshi
18 AGSPJ6909M Roshni N Joshi
19 AGYPK8780F Hitesh N Kawa
20 ANMPK4236D Roopal H Kawa
21 ALDPG8381J Akash Ranchhodbhai Golakia
22 AEEPG1294G Chintan Ranchhodbhai Golakia
23 AAYPG3878J Ranchhodbhai Jasmatbhai Golakia
24 AAWPG3157A Vijuben Ranchhodbhai Golakia
25 AEZPD5474N Bina Devi Dhanuka __________________________________________________________________________ Order in the matter of Pine Animation Limited S.NO. PAN NAME
26 ADLPD5568J Mayank Dhanuka
27 ADOPB3260E Neha Dhanuka
28 ADNPD6220D Nikunj Dhanuka
29 ADUPD7020N Rajkumari Dhanuka
30 ADLPD0494K Umang Dhanuka
31 ADQPD6035P Madan Mohan Dhanuka
32 ABEPJ7142D Madanlal Jain
33 ABEPJ7147G Moolchand Jain
34 ACTPC4078P Manisha Narpatkumar Chopra
35 ABFPK6567J Alok Navinchandra Kubadia
36 ADIPJ9498C Mukesh Kumar Jain
37 AFOPJ4431P Vikas Jain
38 ACIPM0237D Shakuntala Maru
39 ADUPM7778C Paras Chand Maru
40 AJWPM1991R Saurabh Maru
41 AABPF1503E Sushilkumar Shribhagwan Fatehpuria
42 AABPF1507A Umadevi Sushilkumar Fatehpuria
43 AAGHD3018R Deepak Agarwal Huf
44 AADHG0808H Govind Agarwal Huf
45 ABFPB2995P Pankajkumar Rajkumar Baria
46 AFTPB8600D Poonam Pankaj Beria
47 AAPPA6950Q Rajkumar Budhram Agarwal
48 AAPPA6951R Pinky Rajkumar Agrawal
49 AAEPJ9602R Sudhesh Jajoo
50 AAEPJ9603Q Sunil Jajoo
51 AALPJ9756B Snehlata Jajoo
52 AALPJ9757A Kiran Jajoo
53 AAMPJ0021E Anuradha Jajoo
54 AARPJ7854N Omprakash Jajoo
55 ABVPN8122C Heena Hitendra Nagda
56 AGKPB3602K Darshan D Bhanushali
57 AAEPG6708K Ashish Goel PREFERENTIAL ALLOTEES
58 AGMPK5927A Anil Kumar Kasaraneni
59 AABPD9375L Anil Vishanji Dedhia
60 ADZPC5979N Anilkumar Chamanlal
61 AACPM1902D Ankit Rajiderkumar Miglani
62 AEUPB3427L Anmol Prakash Babani
63 AREPS5118G Archana Miglani
64 AANPS2300L Archana Saluja __________________________________________________________________________ Order in the matter of Pine Animation Limited S.NO. PAN NAME
65 AEKPM9977L Arvind Chhotalal Morzaria
66 AADHA7870F Ashok Jain Huf
67 AAAPB5499G Balchand Jain
68 AEFPS6298M Brij Bhushan Singal
69 ABAPL3679D Brijesh Chowdhary Lavu
70 ADPPR2047A Damji Anandji Rambhia
71 AAAPP9409N Gopal Nihchaldas Pariani
72 AAAHH5526G Haresh Rawani Huf
73 AEIPG1584P Hemant Jayant Gogri
74 AAEPS8716P Hirji Morarji Shah
75 AJLPC9910H Jay Hansraj Chheda
76 AAIPS4820L Kantilal Lalji Shah
77 AADPB1550B Kaushal Kanhayalal Bagadia
78 ACMPM6181A Kishor Pranjivan Mehta
79 AEUPB2920C Kunal Ramesh Babani
80 AAQPS5640E Lata V Shah
81 AEBPM1654H Mahendra Bmittal
82 AACPP0931H Mahendra Pandhi
83 AAEPG6125C Mayur Ishvardas Gandhi
84 AABPM6332L Miglani Anuj Rajinder
85 AAJPI8348E Monesh Israni
86 AALPS7124C Nareshkumar Kishanlal Saraf
87 AFPPM2107Q Neelam Mor
88 AAAPV9144N Neena Sudhir Vora
89 ADSPA3332J Neha Bansal
90 AACPG7709G Pankaj Dhanji Goshar
91 BGGPM9415G Peeyush Makhija
92 ACHPB0564H Poojamahendra Mittal
93 AAEPS7956D Poonam Kaushal Bagadia
94 AABPS7441L Pradip Damji Shah
95 AAHHP7899B Prakash Hiralal Jain Huf
96 ABAPA2027N Praveen Kumar Arora
97 APZPV0747H Prithvi Sudhir Vora
98 AADPR1704M Priyanka Haresh Rawani
99 ARIPS3477L Priyanka Miglani
100 AAZPM0573H Rajesh Champaklal Mehta
101 ABSPJ2879F Rajesh Durgashankar Joshi
102 ABHPA9244J Sadha Rani
103 AATHS9775H Sanjay Dnyaneshwer Nikam Huf
104 ADQPT9711L Santosh Yashwant Tandel __________________________________________________________________________ Order in the matter of Pine Animation Limited S.NO. PAN NAME
105 AEJPB6903J Savita Bansal
106 AKYPB3382J Sharan Mohan Babani
107 ALVPM6130D Sunny Mirchandani
108 AAACT8706B Tvc Shares Stock & Investment Pvt Ltd
109 AAAPH6194E Vasudev Mahirwan Hemrajani EXIT PROVIDERS
110 BABPS7447D Amit Singh
111 AAJCA1784D Anjali Suppliers Private Limited
112 AALCA7880J Antaryamini Traders Private Limited
113 AAJCA4459K Apex Commotrade Private Limited Ltd
114 AABCB3052B Bazigar Trading Private Limited
115 AAFCB0211J Blue Horizon Commosales Private Limited
116 AABCB0636K Bsr Finance And Construction Ltd
117 AABCB2575P Burlington Finance Limited
118 AAECC9285A Cheroot Vanijya Pvt Ltd
119 AADCD7140G Devatma Distributors Private Limited
120 AADCD6028P Dhanraksha Vincom Private Limited
121 AAECD8235D Dhlriti Traders Private Limited
122 AAECD8010E Dhyaneshwar Dealers Pvt Ltd
123 AABCD8146J Divya Drishti Traders Pvt Ltd
124 AABCD8147K Divyadrishti Merchants Pvt Ltd
125 AADCD7017J Dove Suppliers Pvt Ltd
126 AAECD5782B Dreamlight Exim Private Limited
127 AADCD0633J Dreamvalley Trading Private Limited
128 AAECD9323N Duari Marketing Private Limited
129 AAACE2862P Esha Securities Ltd
130 AABCF5486H Function Financial Consultants Private Limited
131 AAFCG2554B Gajgamini Merchandise Private Limited
132 AAFCG5351A Gangeshwari Traders Private Limited
133 AAFCG4773J Goldensight Traders Private Limited
134 AADCH3599R Hanshika Dealers Private Limited
135 AACCH8885R Helot Properties Private Limited
136 AACCH4303G Helpful Investment Advisory Private Limited
137 AADCI5139E Indrawati Nirman Pvt Ltd
138 AAECK7329P Kapeeshwar Vintrade Pvt Ltd
139 AACCL3868N Ladios Trading Private Limited
140 AADCR9508C Linus Holdings Ltd
141 AAICM4750C Mobixa Distributors Private Limited
142 AAICM6982C Muchmore Vincom Private Limited
143 AACCN9567A Navdurga Investment Consultants Pvt Ltd __________________________________________________________________________ Order in the matter of Pine Animation Limited S.NO. PAN NAME
144 AABCO2236J Orchid Solution Private Limited
145 AABCO6950F Overload Financial Advisory Pvt Ltd
146 AAACL4269P Padma Impex Private Limited
147 AACCM6582E Pride Distillery Private Ltd
148 AAGCR6009M Ramya Mercantile Pvt Ltd
149 AAGCR1715E Rangan Vincom Private Limited
150 AAECR2312K Rangoli Distributors Private Ltd
151 AAFCR9881C Reachsmart Dealtrade Private Limited
152 AAGCR8144M Reachsmart Developers Private Limited
153 AAECR9858C Ridhi Vincom Private Limited
154 AAGCR8142P Rochak Vinimay Private Limited
155 AAGCR7017M Rochi Dealcom Private Limited
156 AAECR0580M Runicha Merchants Private Limited
157 ACIPS8803M S N Srinivasan
158 AAMCS1711P Sanklap Vincom P Ltd
159 AARCS9144H Sebika Commodities Pvt Ltd
160 AAPCS7850L Shivkhori Construction Private Limited
161 AATCS3687H Sidhiman Vyapaar Private Limited
162 AAMCS1712Q Signet Vinimay Private Limited
163 AAICS0688K Skm Travels Private Limited
164 AAOCS2216D Spark Commodeal Private Limited
165 AAPCS7492G Spice Merchants Private Limited
166 AAJCS0597G Swarna Pushpa Vanijya Private Limited
167 AATCS6718D Swarnprakash Traders Private Limited
168 AADCS5411K Symphony Merchant Pvt Ltd
169 AADCT8403C Topwell Properties Private Limited
170 AAACV8378B Vibgyor Financial Servicepvt Ltd
171 AAECV4988P Vishnudham Marketing Private Limited
172 AAACW8004B Winall Vinimay Private Limited Ltd LTP CONTRIBUTORS
173 AESPN9474K Nellakkara Raghunath
174 AFAPN8764M Prem Lata Nahar
175 AAFHD9092L Dhirendra Kumar Gupta And Sons Huf
176 AAACJ8428J J M S Financial Services Ltd.
177 AJSPS5543F Sanjay Kumar Shah
178 BGGPS9416R Rajesh Kumar Shukla
5. The directions issued against Mr. Rajesh Kumar Shukla (entity at serial no. 178) were revoked vide SEBIs Order dated August 22, 2016. __________________________________________________________________________ Order in the matter of Pine Animation Limited
6. The directions issued against Mr.Kirshnakumar Omprakash Murarka (entity at serial no. 3) were revoked vide SEBIs Order dated June 02, 2017.
7. The directions against the remaining 176 entities were confirmed vide Orders dated June 02, 2016, July 05, 2016, August 22, 2016, and June 02, 2017.
8. Pursuant to the interim order, SEBI conducted a detailed investigation of the entire scheme employed in the instant matter, connection amongst the debarred entities, funds used for the price manipulation of the scrip of PAL, etc., so as to ascertain the violation of securities laws.
9. Upon completion of investigation by SEBI, the following are noted as regards 114 entities who were identified as Preferential Allottees, Exit Providers and LTP Contributors vide the interim order: SEBIs investigation did not find any adverse evidence against them to show any connection/nexus with PAL or its Promoters/Directors or Promoter related entities or any role in price manipulation volume manipulation in the scrip of PAL. Hence, violation of provisions of SEBI Act, SCRA, PFUTP Regulations, etc., were not observed in respect of the following 114 entities. Name PAN Preferential Allottees
1 Anil Kumar Kasaraneni AGMPK5927A
2 Anil Vishanji Dedhia AABPD9375L
3 Anilkumar Chamanlal ADZPC5979N
4 Ankit Rajiderkumar Miglani AACPM1902D
5 Anmol Prakash Babani AEUPB3427L
6 Archana Miglani AREPS5118G
7 Archana Saluja AANPS2300L
8 Balchand Jain AAAPB5499G
9 Brij Bhushan Singal AEFPS6298M
10 Brijesh Chowdhary Lavu ABAPL3679D
11 Damji Anandji Rambhia ADPPR2047A __________________________________________________________________________ Order in the matter of Pine Animation Limited Name PAN
12 Gopal Nihchaldas Pariani AAAPP9409N
13 Haresh Rawani HUF AAAHH5526G
14 Hemant Jayant Gogri AEIPG1584P
15 Hirji Morarji Shah AAEPS8716P
16 Jay Hansraj Chheda AJLPC9910H
17 Kantilal Lalji Shah AAIPS4820L
18 Kaushal Kanhayalal Bagadia AADPB1550B
19 Kishor Pranjivan Mehta ACMPM6181A
20 Kunal Ramesh Babani AEUPB2920C
21 Mahendra Bmittal AEBPM1654H
22 Mahendra Pandhi AACPP0931H
23 Mayur Ishvardas Gandhi AAEPG6125C
24 Miglani Anuj Rajinder AABPM6332L
25 Monesh Israni AAJPI8348E
26 Nareshkumar Kishanlal Saraf AALPS7124C
27 Neelam Mor AFPPM2107Q
28 Neena Sudhir Vora AAAPV9144N
29 Neha Bansal ADSPA3332J
30 Pankaj Dhanji Goshar AACPG7709G
31 Peeyush Makhija BGGPM9415G
32 Poojamahendra Mittal ACHPB0564H
33 Poonam Kaushal Bagadia AAEPS7956D
34 Prakash Hiralal Jain HUF AAHHP7899B
35 Praveen Kumar Arora ABAPA2027N
36 Prithvi Sudhir Vora APZPV0747H
37 Priyanka Haresh Rawani AADPR1704M
38 Priyanka Miglani ARIPS3477L
39 Rajesh Champaklal Mehta AAZPM0573H
40 Sadha Rani ABHPA9244J
41 Sanjay Dnyaneshwer Nikam HUF AATHS9775H
42 Santosh Yashwant Tandel ADQPT9711L
43 Savita Bansal AEJPB6903J
44 Sharan Mohan Babani AKYPB3382J
45 Sunny Mirchandani ALVPM6130D
46 Tvc Shares Stock & Investment Pvt Ltd AAACT8706B
47 Vasudev Mahirwan Hemrajani AAAPH6194E
48 Ashok Jain HUF AADHA7870F
49 Lata V Shah AAQPS5640E Exit Providers
50 Amit Singh BABPS7447D
51 Anjali Suppliers Private Limited AAJCA1784D __________________________________________________________________________ Order in the matter of Pine Animation Limited Name PAN
52 Antaryamini Traders Private Limited AALCA7880J
53 Apex Commotrade Private Limited Ltd AAJCA4459K
54 Bazigar Trading Private Limited AABCB3052B
55 Blue Horizon Commosales Private Limited AAFCB0211J
56 Bsr Finance And Construction Ltd AABCB0636K
57 Burlington Finance Limited AABCB2575P
58 Cheroot Vanijya Pvt Ltd AAECC9285A
59 Devatma Distributors Private Limited AADCD7140G
60 Dhanraksha Vincom Private Limited AADCD6028P
61 Dhlriti Traders Private Limited AAECD8235D
62 Dhyaneshwar Dealers Pvt Ltd AAECD8010E
63 Divya Drishti Traders Pvt Ltd AABCD8146J
64 Divyadrishti Merchants Pvt Ltd AABCD8147K
65 Dove Suppliers Pvt Ltd AADCD7017J
66 Dreamlight Exim Private Limited AAECD5782B
67 Dreamvalley Trading Private Limited AADCD0633J
68 Duari Marketing Private Limited AAECD9323N
69 Esha Securities Ltd AAACE2862P
70 Function Financial Consultants Private Limited AABCF5486H
71 Gajgamini Merchandise Private Limited AAFCG2554B
72 Gangeshwari Traders Private Limited AAFCG5351A
73 Goldensight Traders Private Limited AAFCG4773J
74 Hanshika Dealers Private Limited AADCH3599R
75 Helot Properties Private Limited AACCH8885R
76 Helpful Investment Advisory Private Limited AACCH4303G
77 Indrawati Nirman Pvt Ltd AADCI5139E
78 Kapeeshwar Vintrade Pvt Ltd AAECK7329P
79 Ladios Trading Private Limited AACCL3868N
80 Linus Holdings Ltd AADCR9508C
81 Mobixa Distributors Private Limited AAICM4750C
82 Muchmore Vincom Private Limited AAICM6982C
83 Navdurga Investment Consultants Pvt Ltd AACCN9567A
84 Orchid Solution Private Limited AABCO2236J
85 Overload Financial Advisory Pvt Ltd AABCO6950F
86 Padma Impex Private Limited AAACL4269P
87 Pride Distillery Private Ltd AACCM6582E
88 Ramya Mercantile Pvt Ltd AAGCR6009M
89 Rangan Vincom Private Limited AAGCR1715E
90 Rangoli Distributors Private Ltd AAECR2312K
91 Reachsmart Dealtrade Private Limited AAFCR9881C
92 Reachsmart Developers Private Limited AAGCR8144M __________________________________________________________________________ Order in the matter of Pine Animation Limited Name PAN
93 Ridhi Vincom Private Limited AAECR9858C
94 Rochak Vinimay Private Limited AAGCR8142P
95 Rochi Dealcom Private Limited AAGCR7017M
96 Runicha Merchants Private Limited AAECR0580M
97 S N Srinivasan ACIPS8803M
98 Sanklap Vincom P Ltd AAMCS1711P
99 Sebika Commodities Pvt Ltd AARCS9144H
100 Shivkhori Construction Private Limited AAPCS7850L
101 Sidhiman Vyapaar Private Limited AATCS3687H
102 Signet Vinimay Private Limited AAMCS1712Q
103 Skm Travels Private Limited AAICS0688K
104 Spark Commodeal Private Limited AAOCS2216D
105 Spice Merchants Private Limited AAPCS7492G
106 Swarna Pushpa Vanijya Private Limited AAJCS0597G
107 Swarnprakash Traders Private Limited AATCS6718D
108 Symphony Merchant Pvt Ltd AADCS5411K
109 Topwell Properties Private Limited AADCT8403C
110 Vibgyor Financial Servicepvt Ltd AAACV8378B
111 Vishnudham Marketing Private Limited AAECV4988P
112 Winall Vinimay Private Limited Ltd AAACW8004B LTP Contributors
113 J M S Financial Services Ltd. AAACJ8428J
114 Sanjay Kumar Shah AJSPS5543F
10. Considering the fact that there are no adverse findings against the aforementioned 114 entities with respect to their role in the manipulation of the scrip of PAL, I am of the considered view that the directions issued against them vide interim order dated May 08, 2015 which were confirmed vide Orders dated June 02, 2016, July 05, 2016, August 22, 2016, and June 02, 2017 need not be continued.
11. In view of the foregoing, I, in exercise of the powers conferred upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 read with Sections 11, 11(4) and 11B of the SEBI Act, hereby revoke the Confirmatory Orders dated June 02, 2016, July 05, 2016, August 22, 2016, and June 02, 2017 qua aforesaid 114 entities (paragraph 9 above) with immediate effect. __________________________________________________________________________ Order in the matter of Pine Animation Limited
12. The revocation of the directions issued vide the abovementioned orders (at paragraph 11) is only in respect of the entities mentioned at paragraph 9 of this order in the matter of Pine Animation Limited. As regards remaining entities in the scrip of PAL, violations under SEBI Act, SCRA, PFUTP Regulations, etc., were observed and SEBI shall continue its proceedings against them. Hence, the directions issued vide Orders dated July 05, 2016, August 22, 2016, and June 02, 2017 against the remaining 62 entities shall continue.
13. A copy of this Order shall be served on the Stock Exchanges and Depositories, for necessary action. DATE: SEPTEMBER 19, 2017 MADHABI PURI BUCH PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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