Order in respect of Mrs. Santosh Gupta - in the matter of dealings in the shares of HPC Biosciences Limited

WTM/RKA/ISD/166/2016 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA ORDER IN RESPECT OF Mrs. SANTOSH GUPTA – IN THE MATTER OF DEALINGS IN THE SHARES OF HPC BIOSCIENCES LIMITED 1. Securities and Exchange Board of India (“SEBI”) vide an interim ex-parte order dated June 29, 2015 read with Corrigendum dated January 04, 2016 (hereinafter collectively referred to as “interim order”) restrained 254 entities including Mr. Sanjeev Gupta (PAN: AAHPG1456D) from accessing the securities market and further prohibited him from buying, selling or dealing in securities in any manner whatsoever, till further directions.

2. Towards implementation of the said direction, the demat account/s held by Mr. Sanjeev Gupta along with demat account no. 11248474 held by him jointly with his mother Mrs. Santosh Gupta were frozen by the depositories for credit and debit of securities therein.

3. While the proceedings pursuant to the interim order are still in progress, Mrs. Santosh Gupta inter alia requested for de-freezing of the aforesaid demat account no. 11248474 held with Depository Participant-Alankit Assignments Ltd., in view of the following submissions:

a. She is aged 74 years and have her independent source of income being interest on FDRs and the pension money of her husband. b. She is the first holder in the Demat Account No. 11248474 and she is the true beneficiary of this account. c. She has made all the investments from her own funds. d. She has never invested in any of the scrips mentioned in SEBI order including shares of HPC Biosciences Ltd. e. She has never been restrained by any of SEBI order.

4. In support of aforesaid claims, Mrs. Santosh Gupta submitted the following documents vide her letter and e-mails dated October 06, 2016 and October 25, 2016 respectively: a. Certified copy of statement of income and expenditure for the year ended March 31, 2014, March 31, 2015 and March 31, 2016 b. Certified copy of Balance Sheet including list of shares as on March 31, 2014, March 31, 2015 and March 31, 2016 c. Copy of Income tax return for the assessment years 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17 d. Certificate by Chartered Accountant certifying that investment in shares lying in her Demat account No.11248474 with DP: Alankit Assignments Ltd. have been acquired by her from her own source of income/funds. e. Copy of passbook/bank statement. f. Statement of broker ledger-account (Broker- Tees & Toes Finance & Investments Ltd.) g. Holding statement as on August 31, 2016

5. I note that Mrs. Santosh Gupta has not been restrained by the aforesaid interim order. She is not holding any shares of HPC Biosciences Limited.

6. On a consideration of the facts and circumstances of the case, the material on record including the aforesaid documents, I note the following: a. Mrs. Santosh Gupta, mother of Mr. Sanjeev Gupta, has not been restrained by the aforesaid interim order. b. Mrs. Santosh Gupta is the first holder of the demat account no. 11248474 held with Depository Participant-Alankit Assignments Ltd. c. The total value of the securities lying in demat account no. 11248474 held with Depository Participant-Alankit Assignments Ltd. as on August 31, 2016, is Rs. 688,138/- d. She has disclosed the aforesaid securities in her Balance Sheet as on March 31, 2015 and March 31, 2016. e. She has also disclosed a gross total income of Rs.2,90,552/-, Rs.3,55,728/-, Rs.3,80,782/-, Rs.1,60,325/- and Rs.1,90,119/- in her Income Tax Returns for the Assessment Years 2012- 13, 2013-14, 2014-15, 2015-16 and 2016-17, respectively. h. Chartered Accountant has certified that shares lying in her Demat account No.11248474 with DP: Alankit Assignments Ltd. have been acquired by her from her own source of income/funds.

7. From the above, it is prima facie observed that the securities held in the demat account number 11248474 belongs to Mrs. Santosh Gupta.

8. Considering the aforesaid submissions and evidences brought on record, I am of the view that the balance of convenience is in favour of Mrs. Santosh Gupta. Accordingly, I allow Mrs.Santosh Gupta to transfer the securities from the demat account number 11248474 held jointly with Mr.Sanjeev Gupta to another demat account exclusively held by Mrs. Santosh Gupta in her individual name.

9. The aforesaid transfer shall be subject to the supervision of stock exchanges and depositories and shall be without prejudice to the findings of pending investigation in the matter.

DATE: October 27, 2016 Sd/- PLACE: MUMBAI RAJEEV KUMAR AGARWAL WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA