Order in the matter of Kwality Dairy (India) Ltd

1. On noticing a sharp rise in the price and trading volume of Kwality Dairy India Limited (hereinafter referred to as the Company) during the period between October 2008 and November 2009, the Securities and Exchange Board of India (hereinafter referred to as SEBI) initiated an investigation into the dealings in the shares of the Company. On the basis of the preliminary findings of the investigation, SEBI vide an ad interim ex-parte Order (hereinafter referred to as the Order) dated December 1, 2009, directed Mr. Bhupendra Singh Rathore, Mr. Rajesh Kumar Vyas, M/s Mahasagar Securities & Mrs. Leela Surana R not to buy, sell or deal in securities in any manner till further directions. M/s. Surana Capital Markets, a sub-broker was directed not to buy, sell or deal in the securities of the Company and in its own account in any manner till further directions. The major stock exchanges viz. Bombay Stock Exchange Limited and National Stock Exchange of India Limited and the depositories viz. National Securities Depository Limited and Central Depository Services (India) Limited were directed to ensure that all the above directions are strictly enforced. The concerned stock exchanges were also directed to permit the members dealing for the above entities to square off their existing open positions in the F & O segment. Further, the Exchanges were directed to strictly ensure that no fresh positions are created for these entities.

2. Subsequently, after affording opportunities of hearing, the interim directions issued vide the Order were confirmed vide Orders dated March 25, 2010 and November 9, 2010, against Mrs. Leela Surana R, M/s. Surana Capital Markets,

Mr. Bhupendra Singh Rathore, Mr. Rajesh Kumar Vyas and M/s Mahasagar Securities. It was stated in the aforesaid orders that the investigation in the matter is not yet concluded and the same is going on and that their alleged role or involvement in the manipulation would be reviewed after the conclusion of the investigation in the matter. I note that SEBI had completed the investigation in the matter and initiated adjudication proceedings against the aforesaid persons/entities for the alleged violations. As the investigation in the matter has been completed and appropriate proceedings have been initiated and also since the circumstances which led to the issuance of the directions in the Order no longer exists, I am of the considered view that the interim directions issued vide the Order needs to be vacated.

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 11(4) and 11B thereof, hereby revoke the directions issued vide the ad interim ex-parte Order dated December 1, 2009 and subsequently confirmed vide Orders dated March 25, 2010 and November 9, 2010 in the matter of Kwality Dairy India Limited against Mrs. Leela Surana R, M/s. Surana Capital Markets, Mr. Bhupendra Singh Rathore, Mr. Rajesh Kumar Vyas and M/s Mahasagar Securities, with immediate effect.

4. Copies of this Order shall be served on the National Stock Exchange of India Limited, Bombay Stock Exchange Limited, National Securities Depository Limited and the Central Depository Services (India) Limited, to enable them to take necessary steps for ensuring due compliance with this Order.

DR. K.M. ABRAHAM WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA PLACE: MUMBAI DATE: MARCH 31, 2011