Order in the matter of Pyramid Saimira Theatre Ltd

WTM/SR/ EFD-DRA 2/ 72/03 / 2015

BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA CORAM: S. RAMAN, WHOLE TIME MEMBER ORDER Under Sections 11, 11B, and 11(4) of the Securities and Exchange Board of India Act, 1992 IN THE MATTER OF PYRAMID SAIMIRA THEATRE LIMITED 1. On December 21, 2008 and December 22, 2008 there were several media reports that Securities and Exchange Board of India (hereinafter referred to as 'SEBI') had directed Shri P. S. Saminathan, one of the promoters of Pyramid Saimira Theatres Limited (hereinafter referred to as 'PSTL'), to make an open offer within 14 days, for allegedly violating creeping acquisition norms under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as 'SAST Regulations') at a price not less than Rs. 250. 2. Preliminary inquiries revealed that SEBI had not issued any such direction and that the purported SEBI letter was forged. An investigation was ordered for the purpose of examination of trading in the scrip of PSTL. Investigation by SEBI inter alia revealed the following: The closing share price of PSTL on December 19, 2008 was Rs. 75.40 at the Bombay Stock Exchange (hereinafter referred to as 'BSE') and when the markets opened on December 22, 2008, share price of PSTL increased to Rs. 83 at National Stock exchange (hereinafter referred to as 'NSE') and Rs. 82.90 at the BSE. Some purchases were made just before the "issue" of the forged SEBI letter and there was sale of substantial number of shares of PSTL when the markets opened on December 22, 2008, pursuant to reports of the impending offer to be made by P.S. Saminathan. One trading client namely Shri Nirmal Kotecha was the largest selling client on both BSE and NSE on December 22, 2008. He was a major shareholder of PSTL and also the largest beneficiary of the price rise which occurred due to the publication of the forged SEBI letter. Nirmal Kotecha had offloaded almost his entire stake in PSTL at artificially inflated price levels on December 22, 2008 and benefited from the price increase in the shares of the company.

Fund transfers from and between Nirmal Kotecha and his close relatives (his mother, wife) and related/ associated entities/ persons etc. took place, on December 22, 2008. 3. Pursuant to the preliminary findings of the investigation, SEBI vide an Order dated April 23, 2009 (hereinafter referred to as 'interim order') issued under Sections 11, 11B and 11(4) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as 'SEBI Act'), inter alia directed: Mr. Nirmal Narendra Kotecha, Mr. Rakesh Sharma, Mr. Rajesh Unnikrishnan, Mr. Pratheesh Kumar V.K. and Mr. P.S. Saminathan not to buy, sell or deal in the securities market including IPOs, in any manner, either directly or indirectly, till further directions Certain persons/ entities alleged to be related/ associated with Nirmal Kotecha (who prima facie played a key role in facilitating him, in carrying out suspicious banking transactions) not to buy, sell or deal in the securities market including in IPOs, directly or indirectly, till further directions. Prohibiting two brokers from entering into any fresh agreements with new clients in their operations as stock brokers till further directions. Certain entities/ persons and their proprietors/ partners/ directors who were found to have carried out suspicious banking transactions and channelled funds either directly or indirectly in the stock markets, not to buy, sell or deal in the securities market including in the IPOs, in any manner, either directly or indirectly, till further directions. 4. Apart from these entities/ persons mentioned above, SEBI initiated several other proceedings against several other entities, for their role in market manipulation related to the trading in the scrip of PSTL through orders issued from time to time. 5. This order pertains to the following entities and their proprietors / partners/ directors who form part of the list of entities mentioned in the interim order for the reasons detailed hereinafter. Table A Name of the entity Name of the Proprietor/ Details of PAN Director 1. Adino Trading Company Pvt. Dinesh Bafna/ Vinod Bafna AAFCA7038J Ltd. 2. Advance Finstock Pvt. Ltd. Anand Hunia/ Popatlal Shah/ AABCA9975C Sanjay Hundia/ Rajesh Hudia, Karul Shah

3. Alfa Ceramic Trading Agencies Mukesh Choksi/ Jayesh Sampat AAGFA0609P Pvt. Ltd. 4. Alka Diamond Gopal Verma AAACA5236D 5. Alliance Intermediaries & I Mukesh Choksi/ Jayesh Sampat Not available Network 6. Aman Enterprises Ganesh Jain ACVPJ7984R 7. Amar Enterprises Patel Rakesh Rohitbhai APBPP1077N 8. Amar Trading Co. Bhavik H. Shah AQZPS 5222M 9. Ambe Sales Corp. Omprakah Sagarmal Jain AGYPJ8762C 10. Amrut Trading Co. Bhavik Hasmukh Shah AQZPS5222M 11. Anand Marathe Anand Marathe AKWPM0699M 12. Anchal Properties Pvt. Ltd. Praveen Kumar Jain/ Dattaram AAGCA0681A Lade 13. Anjali Akhade Anjali Akhade AHKPA4470D 14. Ankit Enterprises Parvin Shah ALVPS52685M 15. Ankit Kumar Pagariya * ASLPP8026A 16. Aravind Kumar Soni Arvind Kumar Soni BFMPS0796F 17. Arihant Gems Ankit Kumar Pagariya ASLPP8026A 18. Ashok Metal & Tubes Joshi Tarachand Bhuraram AFRPJ9303F 19. Ashok Metal Corp Kishormal B Jain, Kiran K. Jain AADPJ2942H 20. Bafna Exim P. Ltd. Mukesh Jain / Praveen Kumar AADCB2495E Jain 21. Bagoria Enterprise Amit Kumar Bagoria AHMPB7273R 22. Balajee Diamond Arvind Kumar Soni Not available 23. Balaji Corporation Shah Banty Dinesh BOMPS6427Q 24. Bhairav Diamonds Rajendrakumar M Jain AFNPJ7710E 25. Bhairav Trading Co. Bhivraj B Gujar AMDPG8940L 26. Bhakti Trading Bafna Vinod Kumar AIFPB1312F 27. Bhavani Trading Co. Chirag Patel ARSPP2297H 28. Binal Shah Binal Shah Not available 29. Boston Agency Mangalram Shah AMFPS2966N

30. Capetown Mercantile Co. Pvt. Pankaj Jain AACCC7400M 31. Chandan Gems Umesh Nemchand Bunth AMXPB1214G 32. Chandu Khimavat Chandu Khimavat Not available 33. Chokni Dani Resort Hukumchand Jain AABCC7065R 34. Classic Enterprises Jignesh Amrutbhai Patel Not available 35. Crown Metal India Shah Suresh P. Not available 36. D. Amit Kumar Amit Kumar S. Sonetha BHOPS 7325A 37. Dada Trading Co. Sanjay Rai/ Rambharos Yadav AACCD9411B 38. Darshan Trading Co. Sourabh Rajendra Jain AKDPJ4570F 39. Darshana Corporation Shah Manglaram H. AMFPS2966N 40. Deep Enterprise Deepak Bhatevara Not available 41. Deepak Steel Centre Ranmal J. Bhansali ACUPB4642D 42. Delux Metal Corporation Chauhan Hastimal P. Not available 43. Devam Impex Pvt. Ltd. Piyush Dand AACCD3995Q 44. Dhanlaxmi Tubes And Metal Rajukumar Amarchand. Bhansali AABPB3080G 45. Diamond Export Hukmichand Jain ADCPJ9311Q 46. Dinesh Kumar M. Gupta Dinesh Kumar M. Gupta AABPG5149F 47. Doshi Trading Co. Jagdish R. Doshi ALOPB9958K 48. Edex Production And Prithi Paul Sethi Not available Broadcasting Pvt. 49. Ekta Shares and Securities Pramod Gadia ADUPG6871G 50. Faststone Trading Co Pvt. Ltd. Pankaj Jain Not available 51. Ferro N. Alloys Sohanlal S. Bishnoi Not available 52. Foremost Merchandise Dinesh Kumar Jain AABCF1921D 53. Funke Heat Exchanger India Peter Funke Not available 54. Ganesh Trading Co. Deepak D. Waghe AAVPW1401E 55. Gautam Kumar Bhansali * AJJPB5305N 56. Gayatri Gems Ratan Kumar Agrawal AGFPA0894B 57. Genus Commu Trade Ltd. Virag Patel/ Hitesh Panchal Not available

58. Hare Krishna Export Sonu Bafna Not available

59. Hari Om Trading Co. Apnesh Rangnath Sangle BESPS6459A 60. Harish Metal & Tubes Harish S. Jain AHYPJ8223D 61. Hema Trading Co. Pvt. Ltd. Vasudeo Soliwal Not available 62. Hetal Rajesh Patel * AQUPP6130E 63. Hi-Class Diamond Exports P. Praveen Kumar Lodha, Sanjay AABCH9360G Ltd. Kumar Lodha 64. Honey International Omprakash Shrishrimal ASYPJ2705J 65. Impex Sales Corpn. Manglaram Shah AMFPS2966N 66. Indian Corpn. Jafarbhai Danavala AJGPD9220L 67. J.P. Enterprises Pankaj Kumar Jain ADIPJ4296J 68. Jagat Enterprise Jignesh A.Patel AGAPP 3290K 69. Janak Metal India Vishnoi Mangilal R AEHPV3945C 70. Javda India Impex Ltd. Ramesh Javda AAACA7065L 71. Jay Ambe Marbles Suresh Jain AFFPJ8944J 72. Jodharam Bishnoi Jodharam Bishnoi AJIPB7825P 73. JPK Trading I. Pvt. Ltd. Manish Jain AABCJ6245N 74. Jyoti Enterprises Rakesh Kumar Sen BATPS1606L 75. Kalash Diam Pawankumar S. Tiwari AFWPT7162H 76. Kalash Diamonds Pawan Kumar Tiwari AFWPT7162H 77. Kalpana Corporation Kalpana A. Shah BHHPS5861S 78. Kalyan Kirti International Manglaram Shah AMFPS2966N 79. Kamal Diamonds Sonu Bafna, Kamlesh Dhammani AADCK2205M 80. Kamlesh Dhamman Kamlesh Dhamman Not available 81. Kanak Impex Mahendra Jain AIIPJ8463C 82. Kanchan Impex Sushil Mehta AHPPM9754K 83. Kastbhanjandev Developers Ashwinbhai Patel/ Bipinchandra ABEFS2095Q Bhatt 84. Keshariya Diam Pvt. Ltd. Vijay Narendra Kothari, AADCK2217M Pawankumar Tiwari

85. Keshav Impex Anil Chokhara AGZPC7831L 86. Khushi Corporation Prem Prakash Tailor AHSPT9280G 87. Kirti Enterprises Prem Prakash Tailor AHSPT9280G 88. Kotsons Impex Pvt. Ltd. Dharmendra Kothari, AACCK9104C Chandramohan Verma 89. Krina Gems Kamlesh Shah Not available 90. Kunal Gems Ashok Ratan Soni AAOPV6321K 91. Kush Hindustan Entertainment Ajay Dixit AACCK3597M Ltd. 92. Kush International Ramesh Javda ABCPV7139G 93. Lanka Diam Ganpat P Bhadirke Not available 94. Larsen Exports Laxmanchand Jain ACXPJ4337Q 95. Leena Gems Rajesh Zaveri Not available 96. Lexus Infotech Ltd. Rose Padbidri AAACL4646G 97. Love Khush Jodharam Bishnoi AJJPB7825P 98. Luxury Trading Co. Sanjay Rai/ Ram Bharos Yadav AABCL4969M 99. M.G. Corporation Nandalal G Nagpal ADFPN5684b 100. M.M. Diamond P. Ltd. Mahesh Pyarelal Mehta AAFCM2767A 101. Mahak Impex Mohanlal Jain (Huf) AAEHM7566H 102. Mahalaxmi Corp. Ashwin Patel ANFPP7250H 103. Mahavir Corporation Bafna Vinod Kumar AIFPB1312F 104. Mahendra Jain AIIPJ8463C 105. Manish Enterprises Ramu Pema Gujjar Not available 106. Mann Impex Bhagwan Singh BSWPS8701D 107. Manoj Kumar * AKKPM3857F 108. Master Surveyors & Contractors Suresh Thanage Not available 109. Matrix Exports Vasant Kumar P AMXPM9372L 110. Maulik Diamonds Dilkush Babel AMLPB2470Q 111. Maya Jewels Pvt. Ltd. Mahendra Amritlal Jain, Vikram AAFCM5335G Amritlal Jain, Girish Amritlal Jain

112. Meet Corporation Aashish Mahawar APMPM2937B 113. Megha Traders Deshraj Jat AFHPJ6071J 114. Mihir Agencies P. Ltd. Mukesh Chokshi / Jayesh Sampat AAGFM0809D 115. Milan Gems Manoj Kumar Mehta AKKPM3857F 116. Mohanlal B. Jain * AABPJ1092Q 117. Mohit International Nilesh Parmar AIXPP8680Q 118. Mukta International Rakesh H Jain Not available 119. Natasha Enterprise Rose Padbidri AIPPP6372H 120. Navkar Trading Co. Ashish Jain Not available 121. Navkar Trading Co. * AOHPG2600R 122. Neer Traders Geeta Jadhav/ Hukmichand Jain AACPJ9676P 123. New Planet Trading Co Ltd. Virendra Abhani & Rose AABCN8176E Paddibiri 124. New Wave Mercantile Company Avinash Trimake Not available 125. Nirmal Enterprises Sharma Sanjay Manilal AQQPS1225P 126. Om Corporation Chirag Patel ARSPP2297H 127. Om Corporation Shantilal Prajapat Not available 128. Omega Petro Plast Suryaji K Bhonde AMJPBS 4612J 129. Orbit Gems Vinit Jain AHMPJ0332K 130. Ostwal Trading I. P. Ltd. Manish Jain AAACO7955M 131. P.R. Diamonds Narayan Lal Sharma AEUPS4865H 132. Padmavati Metal & Alloys Jain Suresh AFSPJ4124P 133. Paras Gems Ratankumar D. Agarwal AGFPA0894B 134. Parasmani Tubes Pvt. Ltd. Vohera Piyush Chandulal AABCP7664D 135. Pattani Yogesh B. * Not available 136. Pritesh A. Patel * Not available 137. Priyansh Exports Jitendra Kumar Jain AHNPJ5721D 138. Proficient Infra P. Ltd Ashok Jain AAECP5791Q 139. Pushpa Diam Pvt. Ltd. Dulraj Jain & Ashok Jain Not available

140. R.B. Traders Ravi Kumar Jain AKVPJ7834Q 141. R.K. Travels * AJGPD9220L 142. R.S. Enterprise Ratankumar Agarwal & AFSPA5223J Sunil Kumar Agarwal 143. Raghukul Diam Pvt. Ltd. Nirmal Jain & Sanjay Tiwari AADCR6608P 144. Raghunandan Rayons Ltd. Uttamchand Hinger AABCR1177R 145. Raj Alloys And Steel Pvt. Ltd. Rajkumar Jain/ Nitin Shah AADCR4849L 146. Raj Diamonds Pankaj Singhi BLFPS2616R 147. Raj Ratna Jewellers Nirmal K. Bhavsar AFZPB3668K 148. Raj Traders Avichal Soni BHTPS1033E 149. Rajesh Jain * AIJPS3849H 150. Rajesh Pamecha * AEZPP6573L

151. Rajkamal Steel Bafna Vinod Kumar AIFPB1312F 152. Rakhi Gems Vipul Sharma BASPS5237E 153. Ratan Enterprises Oatmal Purohit AQEPP0909H 154. Ratan Exports Yogesh Kumar Sancheti AHEPS6566L 155. Ravi Enterprises Babulal Jain AAZPJ4510H 156. Ravi Exports Ravi Prakash Jain AKJPJ6022E 157. Realgold Trading Co. Pvt Ltd Nilesh Parmar Not available 158. Reliant Metal Corporation Rajpurohit Arjun P. ALAPR6303A 159. Renisha Impex Pvt Ltd Dinesh Jain / Dulraj Jain AADCB1980G 160. Riddhi Siddhi Multitrade Ltd Pankaj Jain AADCR5831L 161. Ridham Enterprises Rajkumar Agrawal AFSPA5222K 162. Rohit Trading Co. Kamal Thakur ADXPT2249Q 163. Roop Impex Dulraj U. Jain ABTPJ4754E

164. Rukamani Gems Rajesh Jain AIJPJ3849H 165. S.K. Impex Mahendrakumar Bishnoi ACRPB9546E 166. Sagar Trading Co. Shah Suresh P. No available

167. Sahara Impex (India) Vastupal M. Jain ADOPJ2732P 168. Sahil Jewel Poonam Jain AIZPJ6835D 169. Sai Krupa Trading Navratan S Jain AHYPJ4038J 170. Sai Leela Trading Pvt. Ltd. Vijay Suresh Taware, Nitin Arjun AAKCS4578C Gharat 171. Sandeep Steel Industries Babulal K. Bishnoi AERPB1242C 172. Sanjivani Enviro Protection Ltd. Virendra Abhani/ Jitendra Tater/ AADCS3433P Vasudev Soliwal 173. Sanskar Trading Co. Ganapat Lal ADGPL2513A 174. Sapna Diamond Sushil Mehta AHPPM9754K 175. Sarita Diamonds Jitender Jain AFOPJ3543C 176. SBJ Trading Pvt. Ltd. Manish Jain/ Praveen Jain AAKCS9022P 177. Shah Trading Co. Naresh K. Shah BAQPS9096D (The name of Naresh K. Shah was substituted for the name Ms. Hetal R. Shah vide order dated February 03, 2010) 178. Shakti Trading Co. Bafna Vinod Kumar AIFPB1312F 179. Shankeshwar Traders Pvt. Ltd. Javarilal Gautamchahd Jain AALCS9012N 180. Shiyon Enterprise Chandrakant Patel AOZPP4246C 181. Shree Earth Movers & Land Rajemdra Janardan Surve Not available Developers 182. Shree Export Ashok Shrishrimal AAHHA9278H 183. Shree Forge Industries Babulal K. Bishnoi AERPB1242C 184. Shree Ramdev Metal Okharam Ramshiji Choudhary AGFPC9225L 185. Shri Ganesh Gems Sukhpal Prajapat AOHPP4706R 186. Shubh Trading Co. Lalaram Gujar APRPG3369Q 187. Shubham Exports Gautam Kumar Bhansali AJSPB5305N 188. Siddham Exports Jafarbhai Danaval A. AJGPD9220L 189. Sigma Tours & Travels Kamal B. Thakur ADXPT2249Q 190. Simi Impex Sandeep S. Rathore ALUPR5979E

191. Sonal Gems Trading P. Ltd. Hukmichand Jain / Geeta Jadhav AALCS9571N 192. Soundarya Granite & Marble Suresh Jain AFFPJ8944J 193. Star Enterprises Pawan Tarachand Jain AIAPJ2539D 194. Star Gems Bhagirathi Puhan ARTPP7106J

195. Su Jewels Exim Private Ltd. Hukmichand Jain, Gulab Jain AAMCS2988L (erstwhile Chokhi Dhani Resorts P. Ltd.) 196. Sunblink Trading And Invt. Ltd. Sandeep Dalal/ Rajendrakumar AACCS0630F Bhimrajka 197. Sunchan Securities Ltd. Sunil Mansinghani/Kanchan AAFCS8953A Mansinghani 198. Super Gold Tradin Co Pvt Ltd. Geeta Jadhav & Hukumchand AAHCS7254E Jain 199. Supre Gold Traders Geeta Jadhav Not available 200. Swastik Diam Pvt. Ltd. Dulraj Jain & Dinesh Jain ABOPJ2176M 201. Tamanna Gem Ghevarchand B. Pamecha AFWPP6341Q 202. Tarachand Bhoorchand Jain * Not Available 203. Tritop Trading Pvt. Ltd. Bhaskar Ubare AACCT8662J 204. U.M. Exports Mahesh Mehta AEQPM5416E 205. U.P. Mercantile Credit Sahakari Rakhi Gautam/ Dinesh Tripathi/ Not Available Ltd. Virendra Yadav 206. Uma Export Umakant Muduli AVFPM1248N 207. Umesh Bunth Umesh N. Bunth AMXPB1214G 208. Universal Traders Bhagirathi Puhan ARTPP7106J 209. Valiant Metal Kanungo Piyush APTPK5975N 210. Vanguard Jewels Ltd. Uma Kansaria AAACV3480A 211. Vijaylaxmi Corpn. Mukesh Choksi AAAPC7767J 212. Vimal Diamond Vimal Jain AEUPJ3948Q 213. Vinod Kumar Bafna * AIFPB1312F 214. Virat Stainless India Ram Milan Pal ALHPP5125B 215. Vishnulene Synthetics Private Hukmichand Jain / Gulab Jain AAACV1576F Limited

216. Yash V. Jewels Ltd. Jayant Kansara AAACY1119P 217. Yashraj Enterprise Sukhraj Tarachand Jain ACQPJ7210D

6. Pursuant to the issuance of the interim order, one of the above named entities, viz. Shah Trading Company (listed at no. 177 in Table A) appeared for the personal hearing through its proprietor, Ms. Hetal R. Shah. During the personal hearing on December 01, 2009 before the Whole Time Member, SEBI it was observed that the name of Shah Trading Company (Proprietor: Ms. Hetal R. Shah) was inadvertently included in the list. Thereafter, SEBI sought clarification from the relevant bank which vide letter dated April 23, 2009 stated that the credit of Rs.50,00,000 to Chandan Gems (entity no. 31 in Table A) on August 06, 2008 was by way of transfer from the account of one Shah Trading Company whose proprietor was Mr. Naresh K. Shah and not from Shah Trading Company whose proprietor was Ms. Hetal R. Shah. Considering the same, the directions issued against Shah Trading Company (Proprietor: Ms. Hetal R. Shah) were revoked while the entitiy; Shah Trading Company (Proprietor: Naresh K. Shah) was included in the list of persons/entities, and was also directed not to buy sell or deal in the securities market including in the initial public offerings, in any manner, either directly or indirectly, till further directions.

7. Subsequently, vide an order dated December 09, 2009 issued against 20 entities, another order dated January 12, 2010 issued against 75 entities and two separate orders both dated July 05, 2010 issued against 2 more entities, the directions issued vide the interim order were confirmed with respect to the 97 entities (also mentioned in the Table A).

8. While the interim directions were in force, 19 entities/ persons listed at Table A, filed appeals before the Hon'ble Securities Appellate Tribunal (hereinafter referred to as 'Tribunal') challenging the said interim directions. The Hon'ble Tribunal disposed off the appeals vide separate orders as mentioned in the table below, by granting a stay on the operation of the interim direction, taking note of the fact that these 19 entities had remained out of the securities market for a considerable period of time. The Tribunal further directed that the stay is without prejudice to the rights of SEBI to proceed further in the matter and shall not be taken as an expression of the Tribunal's opinion on the merits of the case.

9. The details of the entities and dates of the orders passed by the Hon'ble Tribunal are as follows:

Name Appeal Date of Sr. No. Nos. Order of in SAT Table A 1. Edex Production and 157/2010 07.10.2010 48 Broadcasting Pvt. Limited 2. Advance Finstock Pvt. Limited 38/2011 02.05.2011 2 3. Capetown Mercantile 106/2011 21.07.2011 30 Company Pvt. Limited 4. Alka Diamond Industries 168/2011 14.10.2011 4 Limited 5. Raghunandan Rayons Limited 214/2011 23.01.2012 144 6. Anchal Properties (P) Limited 223/2011 30.01.2012 12 7. Kush Hindustan 224/2011 30.01.2012 91 Entertainment Limited 8. Javda India Impex Limited 11/2012 03.02.2012 70 9. Lexus Infotech Limited 9 / 2012 03.02.2012 96 10. Sanjivani Enviro Protection 10/2012 03.02.2012 172 Limited 11. Faststone Trading Company 43/2012 24.02.2012 50 Pvt. Limited 12. Riddhi Siddhi Multitrade 37/2012 24.02.2012 160 Private Limited 13. SBJ Trading (India) Private 38/2012 24.02.2012 176 Limited 14. Vanguard Jewels Limited 40/2012 24.02.2012 210 15. Yash V. Jewels Limited 42/2012 24.02.2012 216 16. JPK Trading I. Pvt. Limited 36/2012 04.04.2012 73 17. New Planet Trading Co. 41 / 2012 04.04.2012 123 Limited 18. Ostwal Trading I. Pvt. Limited 39/2012 04.04.2012 130 19. Mohit International 150/2012 19.07.2012 117

10. I have considered the facts and circumstances of the case and the relevant documents on record. In particular, I have noted that the role of these entities as revealed during the investigation in the scrip of PSTL relates to large fund transfers between their accounts, without any explanation regarding their purpose. The extent of participation of these entities named in the Table A as revealed during investigation and subsequently is briefly discussed below:

a. Investigation findings indicated that Nirmal Kotecha, who had offloaded substantial number of shares of PSTL on December 22, 2008 at artificially inflated prices, had allegedly used the bank account of one Om Associates for carrying out banking transactions and those transactions were found to have been routed through this account whose proprietor Mr. Kantilal Purohit was found to be a man of limited means and therefore would not have been able to carry out such banking transactions on his own income. The investigation further revealed that Nirmal Kotecha had also used the account of one Mr. Amol Kokane as his front and Nirmal Kotecha was the beneficiary to the funds transferred from Om Associates' account, from where the funds were ultimately infused into the stock market through the broker, India Capital Market Pvt. Limited. The first credit of Rs.10 lakh to the bank account of Amol Kokane on September 10, 2008, was found to have been made from the account of Om Associates.

b. Investigation findings also revealed that prior to the transfer of Rs. 10 lakh to the account of Amol Kokane on September 10, 2008, Om Associates had received credits from the following entities earlier mentioned in Table A (para 5, page 2): Entity No. in Table A 1. Shree Earthmovers and Land 181 Developers 2. Balaji Corporation 23 3. Bhairav Diamond 25 4. Chandan Gems 31 5. Ferro N Alloys 51 6. Gayatri Gems 56 7. Harish Metal and Tubes 60 8. Kanchan Impex 82 9. Om Corporation 127

10. Paras Steel India 133 11. Shree Forge Industries 142 12. Raj Traders 148 13. Sarita Diamond 175 14. Shakti Trading Co. 178 15. R.S. Enterprise 183 16. Shri Pravin Babulal Jain *

* Pravin Jain is/ was the director/ proprietor of certain entities named in Table A namely, JPK Trading I. Pvt. Limited, Ostwal Trading I. Pvt. Limited, SBJ Trading Pvt. Limited, New Planet Trading Co. Limited, Capetown Mercantile Pvt. Limited, Riddhi Siddhi Multitrade Limited and Anchal Propreties Pvt. Limited c. The investigation findings reveal that a trail of the accounts of these entities had prima facie revealed that funds were being rotated through all these accounts as well as through a large network of their connected accounts in a complex circuitous manner and without any explanation regarding their purpose and further that funds were allegedly transferred to the account of Shri Amol Kokane, from the accounts of various persons/ entities mentioned in Table A, without any bonafide purpose. One such cheque for Rs. 18 lacs was issued by one Shri Jignesh Amrutbhai Patel of Classic Enterprises to Shri Amol Kokane.

d. It is also noted that from the account of 17 persons/ entities mentioned in Table A (para 5, page 2), an amount of Rs.11,264,347,969.24 (One thousand one hundred and twenty six crores forty three lakhs forty seven thousand nine hundred and sixty nine and twenty four paisa) had been shown to have been sent out of the country during the financial year 2008-09.

e. Apart from the transfer of funds to the account of Om Associates on September 10, 2008, investigation findings reveal several transactions to and from entities mentioned in Table A and Om Associates. Some such transactions included transfer by Balajee Diamonds of Rs. 66 lacs to Raj Traders on October 11 and 13, 2008, who in turn transferred Rs. 62 lacs to Om Associates on the same day. Om Associates transferred Rs. 70 lacs to Darshan Trading, who in turn, transferred Rs.1.18 crore to Nirman Management Services Pvt. Ltd., where Shri Nirmal Kotecha was one of the directors.

f. Apart from these details, investigation findings reveal that the entities mentioned in Table A were inter-connected based on a statement given by the proprietor of Om

Associates, Mr. Kantilal Purohit, that the bank account of Om Associates was operated by one Mr. Pravin Jain who used to sign the cheques and that Pravin Jain was found to be linked/ connected to various entities named in the interim order. Pravin Jain is/ was the director/ proprietor of certain entities named in Table A namely, JPK Trading I. Pvt. Limited, Ostwal Trading I. Pvt. Limited, SBJ Trading Pvt. Limited, New Planet Trading Co. Limited, Capetown Mercantile Pvt. Limited, Riddhi Siddhi Multitrade Limited and Anchal Propreties Pvt. Limited and was managing the affairs of Natasha Enterprise. The address of Pravin Jain was shared by the directors/ proprietors of certain entities named in the Table A namely, Sanjivani Enviro Protection Limited.

11. Since these suspicious banking transactions relating to the entities as discussed earlier were alleged to be linked to potential money laundering activities that could be detrimental to the genuine investors at large, a copy of the interim order was sent to the Director, Financial Intelligence Unit (hereinafter referred to as 'FIU'). A copy of the same was also forwarded to Reserve Bank of India (hereinafter referred to as 'RBI') for examination at its end for assessing the possibility of detecting the trail of financial transactions with respect to the bank account of the entities/ persons as referred in Table A. It is observed that pursuant to the receipt of reference from SEBI, RBI ordered a special audit of books of accounts of these entities in 9 banks and in this context examined the accounts of these persons/ entities held with the respective banks for forensic audit. Vide letter dated May 16, 2012, RBI noted that the deficiencies pertain only to non-compliance with the procedures for opening of the bank accounts and non reporting of cash transactions to FIU. As regards the trail of movement of funds, RBI in its report observed that on its verification of transactions in the above accounts, there was no prima facie evidence of all or some of the transactions having been orchestrated by the list of 230 persons listed in SEBI Order with a view to camouflage their sole beneficial ownership of the funds and the income by their deployment through the intermediate sham accounts. RBI also stated that this was mainly due to the fact that details of source of funds in these accounts were not available for their verification.

12. It is noted that the interim order was directed to be treated as a show cause notice vis-a-vis all the 230 entities. It is also noted that in the interim order, along with the 217 entities mentioned in Table A, 13 other entities were also mentioned. The reason for the exclusion of these 13 entities from the list is on account of the fact that out of these 13 entities, the proceedings against 3 entities stand concluded while proceedings against 10 other entities are ongoing.

13. Given that most of the entities did not make any submissions with reference to the interim order and that these entities/ persons have been undergoing debarment since April 23, 2009 in terms of the interim order, i.e. for a period of five and a half years (except the 19 entities who filed appeals before the Tribunal) and who have undergone debarment ranging from two and a half to three years, till the granting of the stay by Hon'ble Tribunal, I see no further purpose to issue a notice to show cause to these entities at this stage before concluding these proceedings.

14. The findings of the audit report of RBI indicate the role of the entities/ persons mentioned in the Table A is being restricted to suspicious banking transactions. I also note that no adverse comments have been received from FIU. Apart from the observations recorded in the preceding paragraphs, I note that the investigation did not reveal any trading in securities market by these entities, particularly in the scrip of PSTL. The primary allegation against them is with regard to transferring funds amongst themselves without any explanation about the purpose of the same. It is also noted that the entities have undergone debarment since the passing of the interim order.

15. Under the facts and circumstances detailed above and also considering that the entities have undergone various periods of prohibition since April 23, 2009 (ranging from two-and-a-half to more than five years) I am of the view that the prohibition against these 217 entities listed in Table A of para 5 above, need not continue.

16. Accordingly, 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, 11B and 11(4) thereof, do hereby dispose of the proceedings against the 217 entities mentioned in Table A without any further orders.

Date: March 31, 2015 S. RAMAN Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOAD OF INDIA