Rajesh Pavithran vs Sebi

Date of Decision: 30.10.2017

Appeal No. 272 of 2017

Rajesh Pavithran Flat No. 202, Bliss Building, 2nd Floor, D-Wing LBS Marg, Mulund West, Mumbai- 400 080 ...Appellant

Versus

Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai- 400 051 ...Respondent

Mr. Deepak Dhane, Advocate with Ms. Komal Shah, Advocate i/b Juris Link for the Appellant.

Mr. Pesi Mody, Senior Advocate with Mr. Nishant Upadhyay, Advocate i/b K. Ashar & Co. for the Respondent.

CORAM: Justice J.P. Devadhar, Presiding Officer Dr. C.K.G. Nair, Member

Per: Justice J.P. Devadhar (Oral)

1.

This appeal is filed to challenge the order passed by the Whole

Time Member of Securities and Exchange Board of India ("SEBI" for

short) on September 05, 2017. By the said order several persons

including the appellant are restrained from accessing the capital market

directly or indirectly, and dealing in securities or instruments with Indian

securities as underlying in any manner whatsoever, for a period of ten

years from date of the said order.

2

2. After the matter was argued for some time counsel for the

appellant fairly states that the appellant is basically interested in

liquidating the shares lying in the demat account of the appellant during

the period when the impugned order in operation.

3. In our opinion, fact that the appellant is restrained from accessing

the securities market cannot be a ground to deny liquidation of the shares

lying in the demat account especially when no amount is recoverable

under any order passed by SEBI against the appellant and there is no

order passed by SEBI attaching the shares lying in the demat account of

the appellant.

4. In these circumstances, we permit the appellant to access the

securities market only to the limited extent of liquidating the shares lying

in the demat account of the appellant as more particularly as set out at

'Exhibit D' pg. 247 of the memorandum of appeal.

5. Counsel for SEBI, however submits that in such a case, the amount

realised by liquidating the shares lying in the demat account should be

kept in the ESCROW account. We see no reason to issue any such

direction, because, as on date neither the shares in the demat account are

attached nor there is any amount payable by the appellant to SEBI under

any order passed by SEBI. Accordingly, while upholding the order of

SEBI, we permit the appellant to liquidate the shares lying in his demat

account within a period of three months from today. 3

6. Appeal is disposed of in the aforesaid terms with no order as to

costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Dr. C.K.G. Nair Member 30.10.2017 Prepared & Compared By: PK