Order in respect of Onesource Ideas Venture Limited
- Order No.WTM/RKA/ISD/99/2016
Ratio decidendi
The rule this decision rests on
Trading permission for a listed company is a matter within the exchange's own power under its bye-laws, and it is normally granted once the exchange's prescribed criteria or requirements are met. An interim restraint on a promoter or director from dealing in securities does not, of itself, require SEBI's approval before the exchange decides a listed company's application for trading permission. The exchange must decide that application on its merits under its applicable procedures, guidelines and bye-laws. Any relief directed to the exchange in this manner is without prejudice to the findings of the pending investigation.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/RKA/ISD/99 /2016 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA ORDER IN RESPECT OF ONESOURCE IDEAS VENTURE LIMITED – IN THE MATTER OF FIRST FINANCIAL SERVICES LTD. 1. Securities and Exchange Board of India ("SEBI"), vide an ad interim ex-parte order dated August 11, 2015 (hereinafter referred to as “interim order”), in the matter of First Financial Services Ltd, restrained Mr. B. P. Jhunjhunwala and B.P. Jhunjhunwala HUF from accessing the securities market and further prohibited them from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever, till further directions.
2. While the proceedings against Mr. B. P. Jhunjhunwala and B.P. Jhunjhunwala HUF pursuant to the interim order are still in progress, one of their promoted companies namely Onesource Ideas Venture Limited (formerly known as Anugraha Jewellers Ltd) vide its letter dated June 22, 2016 requested inter-alia to give direction to Bombay Stock Exchange (BSE) to issue trading permission to the company in view of the following submissions:
a. Onesource Ideas Venture Limited (formerly known as Anugraha Jewellers Ltd) was given in-principle approval from BSE with regard to revocation of suspension in the trading of the securities vide letter dated January 07, 2014 vide notice no. DCS/COMP/OT/SB/249/2013-14.
b. Thereafter the company initiated various corporate actions including changing its name from Anugraha Jewellers Ltd to Onesource Ideas Venture Limited, shifting of its registered office from Coimbatore to Chennai and reduction of paid up share capital of the company.
c. Meanwhile the promoter of the company B.P. Jhunjhunwala HUF and the director of the company Mr. B. P. Jhunjhunwala were restrained from accessing the securities market and buying, selling or dealing in securities either directly or indirectly in any manner vide interim order dated August 11, 2015 in the matter of First Financial Services Ltd.
d. The company was informed by BSE officials that since the promoter and director is restrained, the final trading notice cannot be issued without an approval of SEBI. Order in respect of Onesource Ideas Venture Limited e. As a result, more than 2000 shareholders of the company are not in a position to trade in the scrip of the company without any fault.
f. In any case the promoter and director of the company are not in a position to trade in the scrip due to the restraining order.
3. I note that the exchanges are empowered to grant trading permission to the securities of their listed companies, in accordance with their bye-laws. This trading permission to the listed companies is normally given by the exchanges subject to fulfilment of certain criteria or requirements by the listed companies as specified by the respective exchanges.
4. In view of the foregoing, BSE is required to decide upon the application of the company seeking trading permission on merit in accordance to applicable procedures/ guidelines/ bye-laws of the exchange. Accordingly, I advise BSE to decide upon the application of the company seeking trading permission.
5. The aforesaid relief shall be without prejudice to the findings of pending investigation in the matter.
Sd/- DATE: August 19, 2016 RAJEEV KUMAR AGARWAL PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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