1. Securities and Exchange Board of India (“SEBI”) conducted an examination into the dealings in the scrip of Mishka Finance and Trading limited (formerly known as Pyramid Trading and Finance Limited); hereinafter referred to as “Mishka” or “the company”) on BSE Limited (“BSE”) during the period from February 14, 2013 to December 31, 2014 as there was huge rise in the price of the scrip.
2. Upon preliminary inquiry, SEBI prima facie observed the following:
a) Mishka made a preferential allotment of 7,93,700 shares of Rs. 10 each at a premium of Rs. 75/- per share to 46 entities during 2012-13. Once the shares were allotted/transferred to the preferential allottees/promoter related group, certain entities started moving the price of the scrip upwards by trading in very low volumes;
b) After the release of compulsory lock-in period for 1 year, the Preferential Allottees and the Promoter related entities were provided exit at a high price by the certain entities allegedly related/connected amongst themselves and with Mishka (“Exit Providers”);
c) 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 Mishka and its Promoters, Directors and suspected entities were prima facie in violation of SEBI Act, 1992 (“SEBI Act”) and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (“PFUTP Regulations”) SEBI passed an Ad interim ex-parte order dated April 17, 2015 (“interim order”) and restrained the following 129 entities including Mishka 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.
Table: 1
S N Name PAN 1 Mishka Finance And Trading Limited AAACP2548R 2 Wave Inter Trades Pvt Ltd. AAACW0576A 3 Embassy Finance & Consultants P. Ltd. AAACE1313P 4 Tohee Trading & Agencies Pvt Ltd. AAACT1354P 5 Sulabh Impex Ltd. AAICS7362Q 6 Pearl Arcade Trading Private Limited AAFCP6925M 7 Vijay Kumar Jain AAAPJ3197K 8 Ankit Garodia ARRPG4567A 9 Jugalkishore Pralhadrai Sharma ABLPS6840A 10 Amit Kumar Vasishtha AKNPV5025B 11 Rameshwar Manohar Wagh ABLPW8901G 12 Anil Satyanarayan Roongta ABBPR3992G 13 Riteshkumar Amitkumar Chatterjee ACRPC4740L 14 Atul Moreshawar Save ACHPS7762G 15 Parul Rupesh Poddar AKKPP3508Q 16 Sunil Kumar Jain & Sons Huf AAOHS4973C 17 Ravi Khanna Huf AAGHR7451A 18 Gajanand Agarwal AAGPA3508D 19 Pankaj Agarwal AACPA9922H 20 Bharat Gandotra AANPG3179K 21 Aadist Khanna AJVPK5048G 22 Bhavya Khanna ARIPK3181H 23 Jyoti Khanna AAIPK5106B 24 Ravi Khanna AFMPK8726N 25 Lalit Agarwal ACNPA1462H 26 Rupesh Kumar Poddar AELPP0183N 27 Dindayal Malchand Agarwal Huf AAEHD5856M 28 Krishan Agarwal AACPA5733E 29 Seema Jain ACRPJ3552D 30 Jay N Shah BHKPS8506F 31 Sunil Kumar Jain ABYPJ9937E 32 Navinchandra K Shah AAGPS9497R 33 Malti Navinchandra Shah AAGPS9498A 34 Rohini Vijaysingh Patwardhan AGLPP3159L 35 Pranit Agarwal BEIPA7823N 36 A.K. Roongta Huf AABHA9528A 37 Brij Bhushan Singal AEFPS6298M 38 Gokuldham Enterprises Llp AALFG1236F 39 Nitin Kumar Didwania AACPD7055J 40 Prakash Mangilal Surya AAGPS6393C 41 Shrenik Nalin Zaveri AAAPZ1721B 42 Mahesh Kumar Khatry AADPK9309F 43 Prakash Chand Khatry AADPK1946Q 44 Tarun Kumar Chandak ADGPC1107P 45 Kalawati Sharma ACAPS1025K 46 Prakash Chand Sharma AGMPS2776H 47 Chirag Maheshkumar Vyas ABYPV5751G 48 Sheetal Sanjay Udeshi AAAPU2596F 49 Naresh Jalan ACUPJ1252F 50 Naresh Jalan AABHN4403P 51 Mahabir Prasad Jalan ACFPJ2428J 52 Mahabir Prasad Jalan AACHM0965N 53 Harleen Kaur AECPC7959J 54 Savita Bansal AEJPB6903J 55 Smt Rashmi Jain ABTPS0026N 56 Jignesh M. Amin AAJPA2349H 57 Vimal Jain AADPJ5579L 58 Sarad Kumar B Jain AJGPS8091J 59 Ashok Kumar Chowatia AADPC6863A 60 Tarachand L Shah ABQPL6153L 61 Madanlal Babulal Chowatia AADPC6859J 62 Shankar Batra ACSPB5838R 63 Sadhna Rani ABHPA9244J 64 Ranidevi Agarwal AGEPA7936K 65 Ravinder Kumar Gupta (Huf) AADHR3405B 66 Brij Bhushan Singhal (Huf) AAAHB6923R 67 Manharlal Narottamdas Shah AAKPS3276J 68 Esha Securities Ltd. AAACE2862P 69 Amrit Sales Promotion Pvt Limited AACCA3220D 70 Symphony Merchant Pvt Ltd. AADCS5411K 71 Bazigar Trading Private Limited AABCB3052B 72 Rangan Vincom Private Limited AAGCR1715E 73 Ladios Trading Private Limited AACCL3868N 74 Topwell Properties Private Limited AADCT8403C 75 Signet Vinimay Private Limited AAMCS1712Q 76 Sanklap Vincom P. Ltd. AAMCS1711P 77 Runicha Merchants Private Limited AAECR0580M 78 Winall Vinimay Private Limited Ltd. AAACW8004B 79 Spice Merchants Private Limited AAPCS7492G 80 Apex Commotrade Private Limited Ltd. AAJCA4459K 81 Skm Travels Private Limited AAICS0688K 82 Scope Vyapar Private Limited AAICS6023N 83 Vibgyor Financial Servicepvt Ltd. AAACV8378B 84 Helpful Investment Advisory Private Limited AACCH4303G 85 Function Financial Consultants Private Limited AABCF5486H 86 Kapeeshwar Vintrade Private Limited AAECK7329P 87 Sinjan Overseas Pvt Ltd. AAMCS8721P 88 Wonder Procon Private Limited Wppl AABCW0317N 89 Helot Properties Pvt Ltd. AACCH8885R 90 Cheroot Vanijya Pvt Ltd. AAECC9285A 91 Sidhiman Vyapaar Private Limited AATCS3687H 92 Vishnudham Marketing Private Limited AAECV4988P 93 Triala Dealers Private Limited AAECT5548F 94 Mobixa Distributors Private Limited AAICM4750C 95 Antaryami Traders Private Limited AALCA7880J 96 Gajgamini Merchandise Private Limited AAFCG2554B 97 Muchmore Vincom Private Limited AAICM6982C 98 Dreamlight Exim Private Limited AAECD5782B 99 Goldensight Traders Private Limited AAFCG4773J 100 Dynamic Portfolio Management & Services Ltd. AAACD9125E 101 Ritesh Commercial Holdings Limited AABCR1974J 102 Ritesh Projects Private Ltd. AADCR6224M 103 Stardox Vinimoy Private Limited AAECS0352C 104 Raina Vyapaar Private Ltd. AABCR3482R 105 R.C. Suppliers Private Lim Ited AABCR2904A 106 Hari Om Suppliers Pvt. Ltd. AABCH2251E 107 Kalakar Commercial Private Limited AADCK9346B 108 Blue Horizon Commosales Private Limited AAFCB0211J 109 Rochak Vinimay Private Limited AAGCR8142P 110 Rochi Dealcom Private Limited AAGCR7017M 111 Duari Marketing Private Limited AAECD9323N 112 S.N. Srinivasan ACIPS8803M 113 Amit Singh BABPS7447D 114 Indrawati Nirman Pvt Ltd. AADCI5139E 115 Reachsmart Construction Pvt Ltd. AAGCR4662J 116 Overload Financial Advisory Pvt Ltd. AABCO6950F 117 Sebika Commodities Private Limited AARCS9144H 118 Samridhipurn Services Private Limited AATCS4365E 119 Reachsmart Dealtrade Private Limited AAFCR9881C 120 Swarnprakash Traders Private Limited AATCS6718D 121 Dhyaneshwar Dealers Pvt Ltd. AAECD8010E 122 Dhlriti Traders Pvt Ltd. AAECD8235D 123 Ramya Mercantile Pvt Ltd. AAGCR6009M 124 Badamisati Apartments Private Limited AAFCB4546A 125 Arunavo Mukherjee ATIPM7500N 126 Shyam Kanheyalal Vyas ACTPV2787Q 127 Bharat Bagri (Huf) AADHB8488A 128 Jayesh Narendra Kesharia (Huf) AAEHJ1610D 129 Manjulaben Sukhdev Pandya ALVPP7764J
4. The directions issued against Jayesh Narendra Kesharia HUF was revoked vide Order dated November 10, 2015. Further, the directions issued against Bharat Bagri HUF and Manjuben Sukhdev Pandya were revoked vide Order dated August 26, 2016.
5. The directions against the remaining 126 entities were confirmed vide five separate orders dated October 12, 2015, October 21, 2015, April 13, 2016, July 05, 2016 and August 26, 2016.
6. 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 Mishka, etc., so as to ascertain the violation of securities laws.
7. Upon completion of investigation by SEBI, it is noted that there are no adverse findings against the 104 entities mentioned at S. No. 1-104 in Table No. 2 with respect to their role in the price manipulation/prima facie violations for which Interim Order dated April 17, 2015 was passed and subsequently confirmed in the scrip of Mishka, warranting continuation of action under Sections 11B and 11(4) of the SEBI Act for the violation of provisions of SEBI Act and PFUTP Regulations, etc. Further with regard to 9 entities at S. No. 105 to 113 in Table No. 2, no adverse material was found in the Investigation Report with respect to prima facie violations found against them in Interim Order dated April 17, 2015 (which was subsequently confirmed) but the Investigation Report has brought out violation relating to disclosure under SEBI (Prohibition of Insider Trading) Regulations, 1992 and SEBI (Substantial Acquisition of Shares And Takeovers) Regulations, 2011 warranting Adjudication Proceedings. The list of entities is as under-
Table: 2
S N Name PAN 1 Sunil Kumar Jain & Sons Huf AAOHS4973C 2 Ravi Khanna Huf AAGHR7451A 3 Gajanand Agarwal AAGPA3508D 4 Pankaj Agarwal AACPA9922H 5 Bharat Gandotra AANPG3179K 6 Aadist Khanna AJVPK5048G 7 Bhavya Khanna ARIPK3181H 8 Jyoti Khanna AAIPK5106B 9 Ravi Khanna AFMPK8726N 10 Lalit Agarwal ACNPA1462H 11 Dindayal Malchand Agarwal Huf AAEHD5856M 12 Krishan Agarwal AACPA5733E 13 Seema Jain ACRPJ3552D 14 Jay N Shah BHKPS8506F 15 Sunil Kumar Jain ABYPJ9937E 16 Navinchandra K Shah AAGPS9497R 17 Malti Navinchandra Shah AAGPS9498A 18 Rohini Vijaysingh Patwardhan AGLPP3159L 19 Pranit Agarwal BEIPA7823N 20 Gokuldham Enterprises Llp AALFG1236F 21 Nitin Kumar Didwania AACPD7055J 22 Prakash Mangilal Surya AAGPS6393C 23 Shrenik Nalin Zaveri AAAPZ1721B 24 Mahesh Kumar Khatry AADPK9309F 25 Prakash Chand Khatry AADPK1946Q 26 Tarun Kumar Chandak ADGPC1107P 27 Kalawati Sharma ACAPS1025K 28 Prakash Chand Sharma AGMPS2776H 29 Chirag Maheshkumar Vyas ABYPV5751G 30 Sheetal Sanjay Udeshi AAAPU2596F 31 Naresh Jalan ACUPJ1252F 32 Naresh Jalan AABHN4403P 33 Mahabir Prasad Jalan ACFPJ2428J 34 Mahabir Prasad Jalan AACHM0965N 35 Harleen Kaur AECPC7959J 36 Savita Bansal AEJPB6903J 37 Smt Rashmi Jain ABTPS0026N 38 Jignesh M. Amin AAJPA2349H 39 Vimal Jain AADPJ5579L 40 Sarad Kumar B Jain AJGPS8091J 41 Ashok Kumar Chowatia AADPC6863A 42 Tarachand L Shah ABQPL6153L 43 Madanlal Babulal Chowatia AADPC6859J 44 Shankar Batra ACSPB5838R 45 Sadhna Rani ABHPA9244J 46 Ranidevi Agarwal AGEPA7936K 47 Ravinder Kumar Gupta (Huf) AADHR3405B 48 Esha Securities Ltd. AAACE2862P 49 Amrit Sales Promotion Pvt Limited AACCA3220D 50 Symphony Merchant Pvt Ltd. AADCS5411K 51 Bazigar Trading Private Limited AABCB3052B 52 Rangan Vincom Private Limited AAGCR1715E 53 Ladios Trading Private Limited AACCL3868N 54 Topwell Properties Private Limited AADCT8403C 55 Signet Vinimay Private Limited AAMCS1712Q 56 Sanklap Vincom P. Ltd. AAMCS1711P 57 Runicha Merchants Private Limited AAECR0580M 58 Winall Vinimay Private Limited Ltd. AAACW8004B 59 Spice Merchants Private Limited AAPCS7492G 60 Apex Commotrade Private Limited Ltd. AAJCA4459K 61 Skm Travels Private Limited AAICS0688K 62 Scope Vyapar Private Limited AAICS6023N 63 Vibgyor Financial Servicepvt Ltd. AAACV8378B 64 Helpful Investment Advisory Pvt Ltd. AACCH4303G 65 Function Financial Consultants Pvt Ltd. AABCF5486H 66 Kapeeshwar Vintrade Private Limited AAECK7329P 67 Sinjan Overseas Pvt Ltd. AAMCS8721P 68 Wonder Procon Private Limited Wppl AABCW0317N 69 Helot Properties Pvt Ltd. AACCH8885R 70 Cheroot Vanijya Pvt Ltd. AAECC9285A 71 Sidhiman Vyapaar Private Limited AATCS3687H 72 Vishnudham Marketing Private Limited AAECV4988P 73 Triala Dealers Private Limited AAECT5548F 74 Mobixa Distributors Private Limited AAICM4750C 75 Antaryami Traders Private Limited AALCA7880J 76 Gajgamini Merchandise Pvt Ltd. AAFCG2554B 77 Muchmore Vincom Private Limited AAICM6982C 78 Dreamlight Exim Private Limited AAECD5782B 79 Goldensight Traders Private Limited AAFCG4773J 80 Dynamic Portfolio Management & Services Ltd. AAACD9125E 81 Ritesh Commercial Holdings Limited AABCR1974J 82 Ritesh Projects Private Ltd. AADCR6224M 83 Stardox Vinimoy Private Limited AAECS0352C 84 Raina Vyapaar Private Ltd. AABCR3482R 85 RC Suppliers Private Limited AABCR2904A 86 Hari Om Suppliers Pvt. Ltd. AABCH2251E 87 Kalakar Commercial Private Limited AADCK9346B 88 Blue Horizon Commosales Pvt Ltd. AAFCB0211J 89 Rochak Vinimay Private Limited AAGCR8142P 90 Rochi Dealcom Private Limited AAGCR7017M 91 Duari Marketing Private Limited AAECD9323N 92 S.N. Srinivasan ACIPS8803M 93 Amit Singh BABPS7447D 94 Indrawati Nirman Pvt Ltd. AADCI5139E 95 Reachsmart Construction Pvt Ltd. AAGCR4662J 96 Overload Financial Advisory Pvt Ltd. AABCO6950F 97 Sebika Commodities Private Limited AARCS9144H 98 Samridhipurn Services Private Limited AATCS4365E 99 Reachsmart Dealtrade Private Limited AAFCR9881C 100 Swarnprakash Traders Private Limited AATCS6718D 101 Dhyaneshwar Dealers Pvt Ltd. AAECD8010E 102 Badamisati Apartments Private Limited AAFCB4546A 103 Arunavo Mukherjee ATIPM7500N 104 Shyam Kanheyalal Vyas ACTPV2787Q 105 Wave Inter Trades Pvt Ltd. AAACW0576A 106 Embassy Finance & Consultants P. Ltd. AAACE1313P 107 Tohee Trading & Agencies Pvt Ltd. AAACT1354P 108 Sulabh Impex Ltd. AAICS7362Q 109 Pearl Arcade Trading Private Limited AAFCP6925M 110 Dhlriti Traders Pvt Ltd. AAECD8235D 111 Ramya Mercantile Pvt Ltd. AAGCR6009M 112 Brij Bhushan Singal AEFPS6298M 113 Brij Bhushan Singal HUF AAAHB6923R
8. Considering the fact that there are no adverse findings against the 104 entities mentioned at S. No. 1-104 in Table No. 2 with respect to their role in the price manipulation/prima facie violations for which Interim Order dated April 17, 2015 was passed and subsequently confirmed in the scrip of Mishka warranting continuation of action under Sections 11B and 11(4) of the SEBI Act, I am of the considered view that the directions issued against them vide interim order dated April 17, 2015 which were confirmed vide Orders dated October 12, 2015, October 21, 2015, April 13, 2016, July 05, 2016 and August 26, 2016, are liable to be revoked. Further with regard to 9 entities at S. No. 105 to 113 in in Table No. 2, no adverse material was found in the Investigation Report with respect to prima facie violations found against them in Interim Order dated April 17, 2015 (which was subsequently confirmed) but the Investigation Report has brought out violation relating to disclosure under SEBI (Prohibition of Insider Trading) Regulations, 1992 and SEBI (Substantial Acquisition of Shares And Takeovers) Regulations, 2011 warranting Adjudication Proceedings. Therefore directions issued against them vide interim order dated April 17, 2015 which were subsequently confirmed are also liable to be revoked.
9. 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 October 12, 2015, October 21, 2015, April 13, 2016, July 05, 2016 and August 26, 2016 qua aforesaid 113 entities (paragraph 7 above) with immediate effect.
10. The revocation of the directions issued vide this order is only in respect of the entities mentioned at paragraph 7 of this order in the matter of Mishka pertaining to the period from February 14, 2013 to December 31, 2014 in respect of the prima facie violations for which the Confirmatory Order dated October 12, 2015, October 21, 2015, April 13, 2016, July 05, 2016 and August 26, 2016 were passed by SEBI. As regards remaining 13 entities in the scrip of Mishka, violations under SEBI Act and/or SCRA and/or PFUTP Regulations and other securities laws were observed and SEBI shall continue its proceedings against them. Hence, the directions issued vide Order dated April 17, 2015 against remaining 13 entities shall continue.
11. This order is without prejudice to any other action that may be initiated as per law.
12. A copy of this Order shall be served on the Stock Exchanges and Depositories, for necessary action.
Comments