Order in the matter of Swati Jain

WTM/ISD/115/2016 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA ORDER IN RESPECT OF Ms. SWATI JAIN – IN THE MATTER OF MISHKA FINANCE AND TRADING LIMITED 1. Securities and Exchange Board of India ("SEBI"), vide an ad interim ex-parte order dated April 17, 2015 (hereinafter referred to as “interim order”), restrained 129 entities, including Mr. Vimal Banawarilal Jain (AADPJ5579L) 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. Towards implementation of the said direction, the demat account number 12225180 with HDFC Bank Ltd. (DP ID: IN 301151) held in the name of his wife Ms. Swati Jain with Mr. Vimal Banawarilal Jain as a joint holder, have been frozen by the depositories for credit and debit of securities therein. 3. While the proceedings pursuant to the interim order are in progress, Ms. Swati Jain, inter-alia, has submitted that she is having a demat account with HDFC Bank Limited (DP ID: IN 301151 Client ID 12225180). The account has been frozen due to the fact that her husband Shri Vimal Jain's name appears as the second holder in this account.

It is submitted that the name of her husband is there as a second holder merely as a matter of convenience and safety and all the shares held in this account are her property and all the receipts and issues of shares in this account are pursuant to her transactions only. 4. In support of aforesaid claims Ms. Swati Jain has submitted following documents: a) Balance sheet including list of shares held as on March 31, 2014 and March 31, 2015 duly certified by Chartered Accountant. b) A certificate by Chartered Accountant certifying that investment in shares shown in her balance sheet amounting to ` 2, 37,06,237.84 as on March 31, 2015 and ` 1,71, 25,167.72 as on March 31, 2014 have been acquired by her from her own sources and are her own property. c) Income tax return and computation of total income for assessment year 2014-15 and 2015-16. d) Statement of short term capital gains as on March 31, 2014 and March 31, 2015. e) Statement of long term capital gains as on March 31, 2014 and March 31, 2015. f) Statement of speculation profit as on March 31, 2014 and March 31, 2015. g) Bank statement for the period from April 1, 2013 to March 31, 2014 and from April 1, 2014 to March 31, 2015. h) Ledger Copies with her broker (ISE Securities & Services Ltd.) from April 1, 2013 to March 31, 2014 and from April 1, 2014 to March 31, 2015. i) Contract notes from the period from March 24, 2014 to April 30, 2014. Order in the matter of Ms. Swati Jain j) Demat statement for the month of April 2014. 5. I note that Ms. Swati Jain has not been restrained by the aforesaid interim order.

She did not hold any shares of Mishka Finance and Trading Limited as on March 31, 2014 and March 31, 2015. 6. From the documents submitted by Ms. Swati Jain, I note that : a. Ms. Swati Jain is the first holder of the demat account number IN30115112225180 held with Depository participant HDFC Bank Limited. b. She did not hold any shares of Mishka Finance and Trading Limited as on March 31, 2014 and March 31, 2015. c. Chartered Accountant has certified that shares shown in the Balance sheet of Ms. Swati Jain as on March 31, 2014 and March 31, 2015 has been acquired by her from her own sources and are her own property. 7. From the above it is noted that the investments in the securities held in the jointly held demat account number IN30115112225180 were made by Ms. Swati Jain from her own source of funds and she holds rights and interests in those securities. 8. Considering the aforesaid submissions and evidences brought on record, I am of the view that the balance of convenience is in favour of Ms. Swati Jain. Accordingly, I allow Ms. Swati Jain to transfer the securities from the demat account number IN30115112225180 held jointly with Mr. Vimal Jain with with HDFC Bank Ltd. to another demat account exclusively held by her in her individual name.

9. The aforesaid shall be subject to the supervision of exchanges and depositories and shall be without prejudice to the findings of pending investigation in the matter.

Sd/- DATE: August 26th, 2016 RAJEEV KUMAR AGARWAL PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA