Order in respect of Mr. Ashok Juneja, Mr. Vinod Bansal and Mr. Rajesh Arora in the matter of M/s. Kinetic Capital Services Limited

1. The Securities and Exchange Board of India (hereinafter referred to as SEBI) had conducted an investigation into the buying, selling or dealing in the shares of Kinetic Capital Services Limited (hereinafter referred to as the company) during the period November 1998 to June 1999. It was noticed that the share price of the company had increased from `20.60/- as on December 22, 1998 to `65/- on May 17, 1999 on the Delhi Stock Exchange Limited (hereinafter referred to as DSE). The aforesaid investigation had noticed that there was no significant activity by the company that could have contributed to the price increase and that the offices of the company did not conduct any business therein. It was alleged that the company had indulged in manipulating the market with an intention of artificially raising its share price. In view of the findings of the investigation, SEBI issued a notice dated February 2, 2001 to the company alleging that it had violated Regulation 4(a) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as the PFUTP Regulations). Notices dated February 2, 2001 were also issued to individuals namely, Mr. Ashok Juneja, Mr. Sanjeev Khurana, Mr.

Vinod Bansal, Mr. Deepak Kumar Gupta and Mr. Rajesh Arora, who were identified as the directors of the company. While the proceedings were in progress, the company and two of its directors namely, Mr. Deepak Kumar Gupta and Mr. Sanjeev Khurana submitted an application to SEBI for passing of a consent order in terms of SEBI Circular dated April 20, 2007. Thereafter, SEBI vide a Consent Order dated October 22, 2010 disposed of the proceedings against the company and its directors, Mr. Deepak Kumar Gupta and Mr. Sanjeev Khurana, as ordered therein.

2. The proceedings against the other directors namely, Mr. Ashok Juneja, Mr. Vinod Bansal and Mr. Rajesh Arora now remain to be disposed of in the matter. I find from the notices issued to the aforesaid directors that they have been indicted in the matter in their capacities as the directors of the company. Mr. Ashok Juneja, Mr. Vinod Bansal and Mr. Rajesh Arora in their replies have submitted that they have resigned from the directorship of the company with effect from March 31, 1998 and that the intimation of the same was filed with the concerned Registrar of Companies. They have also enclosed the copies of the certified true copy of Form 32 which mentions that they had resigned on the aforesaid date. Further, the annual return of the company in respect of the annual general meeting held on September 27, 2002 also mentions that the aforesaid individuals have ceased to be the directors of the company from March 31, 1998. As per the notices issued to the company and its directors, the share price of the company had increased during the period- December 22, 1998 to May 17, 1999. In view of the foregoing, it would not be proper in the interest of justice to issue any direction against Mr. Ashok Juneja, Mr. Vinod Bansal and Mr. Rajesh Arora. Accordingly, I dispose of the present proceedings initiated against them as ordered hereinbelow.

3. For the aforesaid reasons, I, in exercise of the powers conferred upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 and Section 11B thereof read with Regulation 11 of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, hereby dispose of the proceedings initiated against Mr. Ashok Juneja, Mr. Vinod Bansal and Mr. Rajesh Arora in the matter of Kinetic Capital Services Limited, without any directions.

DR. K.M. ABRAHAM WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA

PLACE: MUMBAI DATE: MAY 18, 2011