Order in the matter of Moryo Industries Ltd.

WTM/RKA/ISD/33/2016 SECURITIES AND EXCHANGE BOARD OF INDIA ORDER UNDER SECTION 11(1), 11(4) AND 11B OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 IN THE MATTER OF MORYO INDUSTRIES LIMITED

IN RESPECT OF: Sl. No. Name PAN Category 1 Ms. Deepti Lalwani AFUPL5641K Director 2 Garth Mercantile Private Limited AAECG9026D Moryo Group 3 Romy Realty Private Limited AADCR6342Q Moryo Group 4 Surface Finance Pvt Ltd AABCS1202L Moryo Group 5 Olympia Multitrading Private Limited AABCO7262J Moryo Group 6 Isairis Trading Private Limited AADCI0407P Moryo Group 7 Samskara Sales Agency Private Limited AATCS7717A Moryo Group 8 Gulmohar Dealcom Private Limited AADCG9091K Moryo Group 9 Mr. Saurabh Surendra Jadhav ANGPJ6430Q Moryo Group 10 Mr. Deepak Suryakant Chavan AJAPC0258P Moryo Group 11 Mr. Suryakant Chanpur ANDPC7557J Moryo Group 12 Helpful Investment Advisory Private Limited AACCH4303G Moryo Group 13 Sadakirti Dealer Pvt Ltd AANCS5873M Moryo Group 14 Dharti Developers And Constructions Pvt Ltd AADCD5959M Moryo Group 15 Mr. Ganesh Eknath Chandanshive ARWPC4266D Moryo Group 16 Goodpoint Impex Private Limited AAFCG0606G Moryo Group 17 Shivsathi Mercantile Private Limited AASCS6284R Moryo Group 18 Shallot Dealtrade Private Limited AARCS4827R Moryo Group 19 Limestone Properties Pvt Ltd AACCL0133G Moryo Group 20 Mahasvin Trading Pvt Ltd AAJCM1338F Moryo Group 1. SEBI, vide an ad interim ex-parte order dated December 04, 2014 (hereinafter referred to as “interim order”), restrained 99 entities, including the aforesaid 20 entities (hereinafter referred to as "noticees"), from accessing the securities market and further prohibited them from buying, selling or dealing in securities in any manner whatsoever, till further directions. 2. The facts and circumstances leading to the passing of the said interim order have been discussed therein and I do not deem it necessary to repeat the same and burden this order with repetition. The modus operandi as described in the said interim order was that Moryo Industries

Order in the matter of Moryo Industries Limited

Ltd (Moryo), its directors/promoters, preferential allottees, and entities connected to Moryo or its directors/promoters (Moryo Group) employed a device wherein the company in nexus with the preferential allottees made a facade of preferential allotment. After the expiry of the lock-in period, the Moryo Group entities purchased shares from preferential allottees at artificially increased prices. In the whole process, entities of the Moryo Group provided a hugely profitable exit to the preferential allottees. Hence, the preferential allottees with the aid of the entities of the Moryo Group misused the stock exchange mechanism to exit at a high price in order to book illegitimate gains with no payment of taxes as long term capital gain (“LTCG”) is tax exempt. 3. At paragraph 34 of the interim order, the noticees have been advised that they may file their objections, if any, within twenty one days from the date of this interim order and, if they so desire, may avail themselves of an opportunity of personal hearing before SEBI, on a date and time to be fixed on a specific request, received from them.

I note that though a copy of the interim order was served on all the noticees, they have failed to submit their reply till date and they have also failed to avail the opportunities of personal hearings provided to them on several dates despite service of hearing notices upon them. In view of these facts and circumstances, I am of the view that the noticees are deliberately keeping away from these proceedings and are not willing to cooperate. I, therefore, proceed to decide the matter at this stage on the basis of the material available on record. 4. I note that investigation in the matter is in progress and appropriate decision, in accordance with law, would be taken after completion thereof. As prima facie found in the interim order, Moryo, its promoters/directors, the preferential allottees and the Moryo Group entities have acted in connivance for implementation of dubious plan, device and artifice that has led to the misuse of stock exchange mechanism to artificially increase price and volume of the scrips to provide illegitimate gains to the preferential allottees in order to claim LTCG benefits that has not only eroded the market integrity but has also been detrimental to the interests of investors who might have been lured to invest in the scrips due to such manipulative and fraudulent trading in the scrips and price movement.

I find that the noticees have failed to make out a prima facie case for revocation or modification of the interim order and the material available on record justifies the continuation of the directions passed against them under the ad interim ex-parte order dated December 04, 2014. 5. I, therefore, in exercise of the powers conferred upon me under section 19 of the SEBI Act, read with sections 11(1), 11(4) and 11B thereof, hereby confirm the directions issued vide the ad interim ex-parte order dated December 04, 2014 against the following entities:

Sl. No. Name PAN Category 1 Ms. Deepti Lalwani AFUPL5641K Director 2 Garth Mercantile Private Limited AAECG9026D Moryo Group

3 Romy Realty Private Limited AADCR6342Q Moryo Group 4 Surface Finance Pvt Ltd AABCS1202L Moryo Group 5 Olympia Multitrading Private Limited AABCO7262J Moryo Group 6 Isairis Trading Private Limited AADCI0407P Moryo Group 7 Samskara Sales Agency Private Limited AATCS7717A Moryo Group 8 Gulmohar Dealcom Private Limited AADCG9091K Moryo Group 9 Mr. Saurabh Surendra Jadhav ANGPJ6430Q Moryo Group 10 Mr. Deepak Suryakant Chavan AJAPC0258P Moryo Group 11 Mr. Suryakant Chanpur ANDPC7557J Moryo Group 12 Helpful Investment Advisory Private Limited AACCH4303G Moryo Group 13 Sadakirti Dealer Pvt. Ltd. AANCS5873M Moryo Group 14 Dharti Developers and Constructions Pvt. Ltd. AADCD5959M Moryo Group 15 Mr. Ganesh Eknath Chandanshive ARWPC4266D Moryo Group 16 Goodpoint Impex Private Limited AAFCG0606G Moryo Group 17 Shivsathi Mercantile Private Limited AASCS6284R Moryo Group 18 Shallot Dealtrade Private Limited AARCS4827R Moryo Group 19 Limestone Properties Pvt. Ltd. AACCL0133G Moryo Group 20 Mahasvin Trading Pvt. Ltd. AAJCM1338F Moryo Group 6. Accordingly, the directions issued vide para 32 of the interim order dated December 04, 2014 shall remain in force till further directions. 7. A copy of this order shall be served on all recognized stock exchanges and depositories to ensure compliance with above directions.

Sd/-

DATE: MARCH 18th, 2016 RAJEEV KUMAR AGARWAL PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA