Clarificatory Order in the matter of Norris Medicine
- Order No.WTM/KMA/IVD/203/01/2010
Ratio decidendi
The rule this decision rests on
A regulator that has restrained persons from dealing in securities may, under its powers in ss. 11, 11B and 11(4) of the SEBI Act, modify that restraint to permit those persons to square off existing open positions in the futures and options segment where the restraint would otherwise leave those positions unclosed. The modification is limited to that purpose. The restrained persons may not take fresh positions, increase open positions, or execute trades, and the stock exchanges must ensure no fresh positions are created for them.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/KMA/IVD/203/01/2010 SECURITIES AND EXCHANGE BOARD OF INDIA ORDER UNDER SECTIONS 11, 11B AND 11(4) OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 IN THE MATTER OF NORRIS MEDICINES LIMITED
1. The Securities and Exchange Board of India (hereinafter referred to as SEBI), vide Order dated December 31, 2009, had restrained Norris Medicines Limited, Mr. B. N. Thakore Mr. N. J. Patel, Mr. Nimish B. Thakore, Positive Healthcare Asia Limited, Indeen Investment & Agencies Private Limited, Shri Dwarikadish Securities & Finlease Private Limited, Ethics Securities & Finlease Private Limited, Foundation Securities & Finlease Private Limited, Mr. Falgun C. Shah and Mr. Dharmendra D. Oza from accessing the securities market and further prohibited them from buying, selling and dealing in the securities market in any manner, either directly or indirectly, for a period of three years. Thereafter, the National Stock Exchange of India Limited (hereinafter referred to as NSE), vide an electronic mail dated January 4, 2010, informed SEBI that Mr. Nimish B Thakore had traded on their exchange on December 31, 2009 in the Cash Segment and the Futures & Options Segment and was having opening positions in respect of his trading in the Futures & Options Segment. In view of the above, it would be necessary to close out the said open positions. As SEBI has prohibited various other persons/entities vide the aforesaid Order, I consider it appropriate to issue the following directions. 2. In view of the foregoing, in exercise of powers conferred upon me under Sections 11, 11B and 11(4) of the Securities and Exchange Board of India Act, 1992, I, hereby permit the concerned stock exchanges to allow Norris Medicines Limited, Mr. B. N. Thakore Mr. N. J. Patel, Mr. Nimish B. Thakore, Positive Healthcare Asia Limited, Indeen Investment & Agencies Private Limited, Shri Dwarikadish Securities & Finlease Private Limited, Ethics Securities & Finlease Private Limited, Foundation Securities & Finlease Private Limited, Mr. Falgun C. Shah and Mr. Dharmendra D. Oza to square off their existing open positions in the Futures and Options Segment, if any, immediately. The said persons/entities would not be allowed to take fresh positions or increase their open positions or execute trades. Further, the concerned stock exchanges should also ensure that no fresh positions are created for the said persons. 3. The directions issued vide the SEBI Order dated December 31, 2009 shall be modified only to the extent as mentioned above.
DR.K.M. ABRAHAM WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA PLACE: MUMBAI DATE: JANUARY 6, 2010
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