Addendum to the Final Order dated November 05, 2019 in the matter of KLG Capital Services Limited
- Order No.WTM/GM/EFD-I/DRA-I/43C/2020-21
Ratio decidendi
The rule this decision rests on
Where restraint or prohibition has been undergone under earlier SEBI orders in the same matter, and those orders were later set aside by SAT, the periods during which the earlier orders remained in force before being set aside are to be set off against the restraint or prohibition imposed by the subsequent order. The set-off extends to restraints on dealing in the securities market and on holding a directorship in a listed company, and it is confined to those periods.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/GM/EFD-I/ DRA-I/43C/2020-21 SECURITIES AND EXCHANGE BOARD OF INDIA ADDENDUM IN THE MATTER OF KLG CAPITAL SERVICES LIMITED 1. Securities and Exchange Board of India (SEBI) had passed an order dated November 05, 2019, bearing reference number WTM/GM/EFD/DRA- I/43/2019-20 read with Addendum dated February 14, 2020, bearing reference number WTM/GM/EFD/ DRA-I/43A/2019–20 (hereinafter together referred to as “the Order”) in the matter of KLG Capital Services Limited, whereby Shri Praveen Mohnot, along with certain other entities, was inter alia restrained from buying, selling or dealing in or accessing the securities market and was further prohibited from holding position of a director in any listed company, for a period of five years from the date of the Order.
2. Pursuant to a request received vide letter dated March 05, 2020 from Shri Praveen Mohnot regarding setting off of period of restraint / prohibition already undergone by him under earlier SEBI orders in the matter against the period of restraint / prohibition directed in the abovementioned Order, the following directions shall be added in Para 26 of the Order after sub-para (i): “(j) The periods of restraint / prohibition in respect of buying, selling or dealing in the securities market in any manner whatsoever, or accessing the Addendum to the Final Order dated Nov 05, 2019 in the matter of KLG Capital Services Ltd.
securities market, directly or indirectly, or holding the position of a director in any listed company, already undergone by Shri Praveen Mohnot under the directions issued vide SEBI orders dated September 22, 2009 and July 24, 2014, before these SEBI orders were set aside by the Hon’ble SAT vide its orders dated October 21, 2010 and February 05, 2015 respectively (i.e. the respective periods during which the said SEBI orders remained in force before being set aside by the Hon’ble SAT), shall be set off against the period of restraint / prohibition directed at para 26(a) and 26(b) above.”
3. The above mentioned direction shall be read along with the other directions contained in paragraph 26 of the Order.
Place: Mumbai G. MAHALINGAM Date: July 24, 2020 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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