Order in the matter of PM Telelinks Ltd. and 8K Miles Software Solutions Ltd.
- Order No.SEBI/WTM/MPB/EFD-DRA-I/38/2017
Ratio decidendi
The rule this decision rests on
The directions issued against a person by an ad interim ex parte order under Sections 11 and 11(4) of the SEBI Act, as confirmed by a confirmatory order, are liable to be revoked where the investigation discloses no adverse evidence or findings against that person for violation of the PFUTP Regulations, so that continuing action under Section 11B read with Section 11(4) is not warranted. Such revocation operates only in respect of the entities found free of adverse findings and only for the investigation period. Directions against other entities against whom violations are found continue, and the revocation is without prejudice to any other action SEBI may lawfully take.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Under Sections 11, 11(4) and 11B of the Securities and Exchange Board of India Act, 1992 in the matter of PM Telelinks Limited and 8K Miles Software Solutions Limited
1. Securities and Exchange Board of India (“SEBI”) conducted a preliminary examination into the dealings in the scrip of PM Telelinks Limited (“PMTL”) and 8K Miles Software Solutions Limited (“8K Miles”) for the period from August 1, 2011 to September 30, 2012 and January 4, 2012 to September 28, 2012 respectively, pursuant to unusual price movement in the scrip of PMTL and 8K Miles on the Bombay Stock Exchange.
2. Upon preliminary examination, SEBI prima facie found that various connected entities had indulged in fraudulent and manipulative trading in the scrip of PMTL and 8K Miles in violation of provisions of SEBI Act, 1992 (“Act”) and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (“PFUTP Regulations”).
3. Accordingly, SEBI passed Ad interim ex-parte order dated April 18, 2013 (“interim order”), inter-alia, restraining 13 entities including Pankaj N. Patel, Ronak P. Patel and Urmila G Patel from accessing the securities market and buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever, till further directions. The name of the entities against whom the interim order was passed are as follows:
S. No Name PAN NO
1 Vijay Babulal Shah AOMPS1703C
Order in the matter of PM Telelinks Limited and 8K Miles Software Solutions Limited
2 Saurin Pravinbhai Shah BKYPS3545K 3 Bhavini Vijaykumar Shah CDAPS8340A 4 Jipal Pineshkumar Shah BMWPS2515R 5 Jagdish Ramanlal Patel AAWPP0600R 6 Daivik Jatinbhai Shah BXYPS2715J 7 Gulab Chand Pukhraj Surana AINPS9082R 8 Ravi Pukhraj Surana AINPS9085J 9 Dipin Surana AINPS9083Q 10 Pankaj N. Patel AAWPP0599D 11 Ronak P. Patel ATKPP2021M 12 Urmila G. Patel ATKPP2887M 13 Hema G. Patel AQGPP6610B
4. Subsequently, confirmatory order dated December 30, 2013 was passed, inter-alia, confirming the directions passed in the interim order against the 13 entities.
5. Pursuant to the interim order, SEBI conducted a detailed investigation into the role of the various entities in price manipulation in the scrip of PMTL and 8K Miles during the period from August 1, 2011 to September 28, 2012 and January 4, 2012 to September 28, 2012 (collectively referred to as “Investigation Period”) so as to ascertain the violation of securities laws. Upon completion of investigation by SEBI, investigation did not find any adverse evidence/adverse findings in respect of violation of provisions of the PFUTP Regulations in respect of the following 3 entities (against whom directions were issued vide the interim order as confirmed by the confirmatory order) warranting continuation of action under Section 11B r/w 11(4) of the Act. The details of the 3 entities are as follows:-
S.No Name of the Entity PAN 1. Pankaj N. Patel AAWPP0599D 2. Ronak P. Patel ATKPP2021M 3. Urmila G. Patel ATKPP2887M
Order in the matter of PM Telelinks Limited and 8K Miles Software Solutions Limited
6. Considering the fact that there are no adverse findings/inference against the aforementioned 3 entities with respect to their role in the manipulation of the scrip of PMTL and 8K Miles, I am of the considered view that the directions issued against them vide interim order dated April 18, 2013 as confirmed by order dated December 30, 2013 are liable to be revoked.
7. 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, 11(4) and 11B of the SEBI Act, hereby revoke the confirmatory order dated December 30, 2013 qua aforesaid 3 entities (paragraph 5 above) with immediate effect.
8. The revocation of the directions issued vide the abovementioned order (at paragraph 7) is only in respect of the entities mentioned at paragraph 5 of this order in the matter of PMTL and 8K Miles for the Investigation Period. As regards remaining entities in the scrip of PMTL and 8K Miles, violations under SEBI Act, PFUTP Regulations, etc., were observed and SEBI shall continue its proceedings against them. Hence, the directions issued vide confirmatory order dated December 30, 2013 against the remaining 10 entities shall continue. This revocation order is without prejudice to any other action SEBI may initiate as per law
9. A copy of this Order shall be served on the Stock Exchanges and Depositories, for necessary action.
-Sd-
DATE: SEPTEMBER 22, 2017 MADHABI PURI BUCH PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
Order in the matter of PM Telelinks Limited and 8K Miles Software Solutions Limited
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