Order against Mr. Mukesh G Konde, Mr. Ashok Narayan Waje and Mr. Nitesh Ashok Jadhav in the matter of RTS Corporation Limited

1. Securities and Exchange Board of India (hereinafter referred to as SEBI), vide an ex-parte ad-interim order dated June 5, 2009, in the matter of RTS Power Corporation Limited (hereinafter referred to as the company), for the reasons stated therein, inter alia, restrained Mr. Mukesh G. Konde (hereinafter referred to as Mr. Konde), Mr. Ashok Narayan Waje (hereinafter referred to as Mr. Waje) and Mr. Nitesh Ashok Jadhav (hereinafter referred to as Mr. Jadhav) from accessing the securities market and prohibited them from buying, selling or dealing in securities market, directly or indirectly, till further orders. The said order also provided an opportunity to the aggrieved parties to file their objections, if any, within fifteen days. However, Mr. Konde, Mr. Waje and Mr. Jadhav have not filed any objections, so far, in respect of the findings of ex-parte ad interim order dated June 5, 2009. The circumstances which led to the passing of the ex-parte order dated June 5, 2009 against various persons/entities including Mr. Konde, Mr. Waje and Mr. Jadhav and their prima facie role in the alleged market manipulation in the shares of the company on February 11, 2009, have been explained in detail in the said order. It is pertinent to note that, SEBI had received complaints from certain stock brokers informing that the aforesaid persons after buying substantial number of shares of the company on February 11, 2009 failed to fulfill their respective pay-in obligations. Their total obligation accounted for Rs. 9,14,49,113/-. Needless to say, such defaults are serious threat to the functioning of the securities market and as a market regulator, it is the duty of SEBI to interfere and take appropriate measures/actions including directions against the persons who were found involved in such transactions.

2. As already explained in the ex-parte order, substantial volume of shares of the company was traded in the month of February 2009, particularly on February 11. The said increase was not supported by any fundamentals of the company. The fact that Mr. Konde, Mr. Waje and Mr. Jadhav had traded in the shares of the company on February 11, 2009 is undisputed before me. It was observed that there was unusual substantial trading in the shares of the company on February 11, 2009. Mr. Konde, Mr. Waje and Mr. Jadhav who were found to be the major buyers on the said date had defaulted in their payment obligations. The investigation in the matter is not yet concluded and the same is still in progress. The investigation alone can bring out the role of the parties including Mr. Konde, Mr. Waje and Mr. Jadhav in the alleged manipulation. The available material on record justifies the continuation of the directions passed against Mr. Konde, Mr. Waje and Mr. Jadhav under the ad interim ex-parte order dated June 5, 2009, till the completion of the investigation. Therefore, till the completion of such investigation, I do not consider it fit to interfere with the directions passed by SEBI vide order dated June 5, 2009.

3. 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 11B and 11(4) thereof, hereby confirm the directions issued vide the ad-interim ex-parte order dated June 5, 2009 in the matter of RTS Power Corporation Limited against Mr. Mukesh G. Konde Mr. Ashok Narayan Waje and Mr. Nitesh Ashok Jadhav.

DR. K. M. ABRAHAM WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA PLACE: MUMBAI DATE: NOVEMBER 18, 2009