Order in the matter of Castor Seed Contracts

WTM/GM/ISD2/CDD/03/DEC/2016

SECURITIES AND EXCHANGE BOARD OF INDIA ORDER In continuation of orders dated March 2, 2016 and May 24, 2016 in the matter of trading in Castor Seed Contracts at National Commodity & Derivatives Exchange Limited (NCDEX) In respect of: Sr. No. Noticee PAN Category : Commodities Trading Member 1. Neer-Ocean Multitrade Private Limited AADCN3061E 2. Investmart Commodities Limited AAECM3447N 3. Mid India Commodities Private Limited AABCT1983F 4. Leo Global Commodities Private Limited AAACL6967A Category : Clients/Trading Entities 5. Mr. Narsinpuria Korodimal AGXPK2223Q 6. Secunderabad Oils Limited AACCS8208H 7. UKS Oils Private Limited AAACU4566C 8. Ruchi Global Limited AAACR7202A 9. Sisne Polymers Private Limited AAPCS4092L 10. Mr. Anuj Jain ABEPJ8083F 11. Bharat Foods Co-Operative Limited AAAAB3160D 12. Tanisha Multitrading Private Limited AAECT2559E 13. Mr Vijay Saraf AERPS2485J 14. Vartika Trading Private Limited AAECV0551G 15. Piyali Trading Pvt Ltd AABCR1604D 16. Stride Multi Trade Pvt Ltd AAGCS5768N 17. National Steel and Agro Industries Limited AAACN3548H 18. Ruchi Soya Industries Limited AAACR2892L The aforesaid entities are hereinafter referred to by their respective names or collectively as “the noticees”.

1. Securities and Exchange Board of India ("SEBI"), vide ad interim ex-parte orders-cum-show cause

In the matter of Castor Seed Contracts notice dated March 2, 2016 and May 24, 2016 (hereinafter referred to as “interim order/s”), restrained 18 entities (16 entities vide order dated March 2, 2016 and 2 entities vide order dated May 24, 2016), 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. All the noticees have filed their replies in the said matter and a few of them have availed opportunity of inspection of documents relied upon in the matter for passing the interim order. All entities were granted opportunity of personal hearing before me during December 20-23, 2016. In response to such opportunity granted to the noticees, Mid India Commodities Private Limited, Sisne Polymers Private Limited, Bharat Foods Co-operative Limited, Mr. Vijay Saraf, National Steel and Agro Industries Limited, Neer-Ocean Multitrade Private Limited, Ruchi Global Limited and Tanisha Multitrading Private Limited appeared for hearing and made submissions. 3. While the proceedings pursuant to the interim order are still in progress, from the written and oral submissions made by the entities, it is noted that most of the entities besides making out their respective defence with respect to the prima facie findings in the ex-parte orders have also requested for interim reliefs.

I note that, majority of them raised a common concern over possible erosion of value of securities consequent to the directions effecting immediate freezing of their demat accounts. Among other interim reliefs many of the entities have sought permission to liquidate existing portfolio. Upon hearing the submission of the entities in general, I find it necessary and expedient in the interest of investors and the integrity of the securities market to address the issue of portfolio exposure to market volatility. 4. I, therefore, in exercise of the powers under sections 11(1), 11(4) and 11B of the SEBI Act, hereby, relax the interim orders dated March 2, 2016 and May 24, 2016 passed against the noticees to the limited extent to enable them to protect their portfolio from market volatility, as indicated hereunder : (a) The noticees may sell the securities lying in their demat accounts as on the date of the interim order, other than the shares of the companies which are suspended from trading by the concerned stock exchange, in an orderly manner under the supervision of the stock exchanges so as not to disturb the market equilibrium and deposit the sale proceeds in an interest bearing escrow account with a nationalized bank; (b) the noticees may tender the shares lying in their demat account in any open offer / delisting offer / buyback offer under the relevant regulations of SEBI and deposit the sale proceeds in an interest bearing escrow account with a nationalized bank; (c) the noticees shall avail the benefits of corporate actions like rights issue, bonus issue, stock split, dividend etc. (d) the aforementioned window for sale of shares lying in respective portfolio shall stand withdrawn if any entity is found to execute any trade in breach of the above conditions.

5. The aforesaid relaxations/reliefs shall be uniformly available to all the 18 entities covered in the interim orders dated March 2, 2016 and May 24, 2016. 6. The above directions are general in nature and shall not prejudice the findings of investigations being conducted in the matter. 7. This order shall continue to be in force till further directions. 8. A copy of this order shall be served on all recognized stock exchanges and depositories to ensure compliance with above directions. Sd/- G. MAHALINGAM PLACE : MUMBAI WHOLE TIME MEMBER DATE : December 23, 2016 SECURITIES AND EXCHANGE BOARD OF INDIA