Addendum to OPG Securities Private Limited Final Order
- CitationWTM/GM/EFD/02A/2019–20
Ratio decidendi
The rule this decision rests on
A restraint order that freezes a noticee's market activity may be relaxed to the limited extent necessary to close open derivative positions held at the date of the final order, where those positions must be closed. The relaxation is confined to closing existing positions, is limited to the earlier of the contracts' expiry or two months from the final order, and is conditional on the proceeds of closure being held in a dedicated escrow account, so that the monetary direction is secured.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/GM/EFD/02A/2019–20 SECURITIES AND EXCHANGE BOARD OF INDIA ORDER ADDENDUM TO THE ORDER HAVING REFERENCE NO. WTM/GM/EFD/02/2019–20 DATED APRIL 30, 2019 IN THE MATTER OF OPG SECURITIES PRIVATE LIMITED.
1. Vide an Order having reference no. WTM/GM/EFD/02/2019–20 dated April 30, 2019 (“Final Order”), OPG Securities Private Limited and its Directors (Sanjay Gupta, Sangeeta Gupta and Om Prakash Gupta) (“Noticees”) were prohibited from accessing the securities market and from buying, selling or otherwise dealing in securities, either directly or indirectly, for a period of five years from the date of the aforesaid Order. As regards OPG Securities Private Limited, the aforementioned prohibition was limited to its proprietary account(s). It was further directed that during the period of restraint, the existing holding of securities (including units of mutual funds) of the Noticees shall remain frozen.
2. The Noticees were also directed to disgorge an amount of ₹15.57 Crores along with interest calculated at the rate of 12% per annum from April 7, 2014 onwards, till the date of payment, to be paid jointly and severally within 45 days from the date of the Final Order.
3. Subsequent to the issuance of the Final Order, it is understood that OPG Securities Private Limited is holding open positions in the Futures and Options and Currency Derivatives segments as at the end of trading on April 30, 2019, which need to be closed.
4. In view of the above, the directions issued vide the Final Order shall stand relaxed for the limited purpose of allowing the Noticees to close the open positions in the Futures and Options and Currency Derivatives segments of OPG Securities Private Limited on or before the expiry date of the respective contracts or within a period of two months from April 30, 2019, whichever is earlier. The aforementioned relaxation is subject to the payout/proceeds, if any, with respect to such closure of open positions being kept by the Noticees in an Escrow Account created specifically for the purpose in a Nationalized Bank, to the extent indicated at paragraph 2 above.
5. A copy of this Order shall be served upon the recognized Stock Exchanges for necessary compliance.
Place: Mumbai G. MAHALINGAM Date: May 3, 2019 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
Addendum to the Order in the matter of OPG Securities Private Limited
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