Revocation Order in the matter of Pine Animation Limited[SAT Appeal No.77 /2017]

SEBI/WTM/MPB/EFD-1-DRA-III/28/09/2017 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA CORAM: MADHABI PURI BUCH, WHOLE TIME MEMBER ORDER Under Sections 11, 11(4) and 11B of the Securities and Exchange Board of India Act, 1992 read with Regulation 11(1) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, in the matter of Pine Animation Limited.

1. Securities and Exchange Board of India (“SEBI”) conducted an examination into the dealings in the scrip of Pine Animation Limited (“PAL”) on BSE Limited (“BSE”) during the period from May 22, 2013 to January 30, 2015 as there was huge rise in the traded volume and price of the scrip.

2. Upon preliminary inquiry, SEBI prima facie observed the following:  PAL made preferential issue of equity shares of around Rs.24.7 crores to 92 entities during 2012-13. These shares were locked-in for a period of one year;  After the release of compulsory lock-in period, the Preferential Allottees and the Promoter related entities (i.e. entities to whom PAL’s Promoters transferred their shares in physical form) were provided exit at a high price by the entities allegedly related/connected amongst themselves and with PAL ("Exit Providers");  By virtue of the same, it was alleged that the company and persons in charge of its affairs created preferential allotment of shares as a mode to provide fictitious long term capital gains ("LTCG") to its Preferential Allottees and Promoter related entities so as to convert their unaccounted income into accounted one; its Promoters/Directors Exit Providers, Preferential Allottees and the Promoter related entities artificially increased the volume and price of the scrip and misused securities market system for making illegal gains and to convert ill-gotten gains into genuine one to avail LTCG.

3. As the aforesaid activities of PAL and its Promoter/Directors, Promoter related entities Preferential Allottees, Exit Providers, LTP Contributors were in violation of SEBI Act, 1992 (“SEBI Act”), Securities Contracts (Regulation) Act, 1956 (“SCRA”), and SEBI (Prohibition Order in the matter of Pine Animation Limited of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (“PFUTP Regulations”) SEBI passed an Ad interim ex-parte order dated May 08, 2015 (hereinafter referred to as “interim order”) and restrained 178 entities including PAL and its Promoters and Directors 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. 4. The name of the entities against whom the interim order were passed are as follows:

S.NO. PAN NAME 1 AAECM0267A PINE ANIMATION LTD. DIRECTORS OF PINE ANIMATION LTD. 2 AMCPR0635A Deepak Prakash Rane 3 AAJPM6827G Krishnakumar Omprakash Murarka 4 AAPPYO422P Lalji Ramraj Yadav 5 AOMPP1671C Mandar Subhash Palav 6 AABPN3336R Nagaraja Sharma Rajagopalan 7 AJZPJ7049J Nirmal Pragjibhai Jodhani 8 APUPP9069B Priyesh Prakash Pethe 9 BMKPK5626B Santosh Kumar PROMOTERS OF PINE ANIMATION LTD. 10 AABCF0975D First Entertainment Private Limited 11 AAACU9294K Unique Image Production Pvt. Ltd. DIRECTORS OF FIRST ENTERTAINMENT PVT. LTD. AND UNIQUE IMAGE PRODUCTION PVT. LTD. 12 AEZPM6900L Murali Shanmugam 13 ARUPP1577G Prabu Sekar 14 ADRPV2013N Sekar Vasu PROMOTER RELATED ENTITIES 15 AAECG2103R Gajakarna Trading Pvt Ltd 16 AAHCM1333N Mahaganapati Financial Services Pvt Ltd 17 AAFPJ6734M Nimesh S Joshi 18 AGSPJ6909M Roshni N Joshi 19 AGYPK8780F Hitesh N Kawa 20 ANMPK4236D Roopal H Kawa 21 ALDPG8381J Akash Ranchhodbhai Golakia 22 AEEPG1294G Chintan Ranchhodbhai Golakia 23 AAYPG3878J Ranchhodbhai Jasmatbhai Golakia 24 AAWPG3157A Vijuben Ranchhodbhai Golakia 25 AEZPD5474N Bina Devi Dhanuka Order in the matter of Pine Animation Limited

S.NO. PAN NAME 26 ADLPD5568J Mayank Dhanuka 27 ADOPB3260E Neha Dhanuka 28 ADNPD6220D Nikunj Dhanuka 29 ADUPD7020N Rajkumari Dhanuka 30 ADLPD0494K Umang Dhanuka 31 ADQPD6035P Madan Mohan Dhanuka 32 ABEPJ7142D Madanlal Jain 33 ABEPJ7147G Moolchand Jain 34 ACTPC4078P Manisha Narpatkumar Chopra 35 ABFPK6567J Alok Navinchandra Kubadia ADIPJ9498C Mukesh Kumar Jain 36 AFOPJ4431P Vikas Jain 37 ACIPM0237D Shakuntala Maru 38 ADUPM7778C Paras Chand Maru 39 AJWPM1991R Saurabh Maru 40 AABPF1503E Sushilkumar Shribhagwan Fatehpuria 41 AABPF1507A Umadevi Sushilkumar Fatehpuria 42 AAGHD3018R Deepak Agarwal Huf 43 AADHG0808H Govind Agarwal Huf 44 ABFPB2995P Pankajkumar Rajkumar Baria 45 AFTPB8600D Poonam Pankaj Beria 46 47 AAPPA6950Q Rajkumar Budhram Agarwal 48 AAPPA6951R Pinky Rajkumar Agrawal 49 AAEPJ9602R Sudhesh Jajoo 50 AAEPJ9603Q Sunil Jajoo 51 AALPJ9756B Snehlata Jajoo 52 AALPJ9757A Kiran Jajoo 53 AAMPJ0021E Anuradha Jajoo 54 AARPJ7854N Omprakash Jajoo 55 ABVPN8122C Heena Hitendra Nagda 56 AGKPB3602K Darshan D Bhanushali 57 AAEPG6708K Ashish Goel PREFERENTIAL ALLOTEES 58 AGMPK5927A Anil Kumar Kasaraneni 59 AABPD9375L Anil Vishanji Dedhia 60 ADZPC5979N Anilkumar Chamanlal 61 AACPM1902D Ankit Rajiderkumar Miglani 62 AEUPB3427L Anmol Prakash Babani 63 AREPS5118G Archana Miglani 64 AANPS2300L Archana Saluja Order in the matter of Pine Animation Limited

S.NO. PAN NAME 65 AEKPM9977L Arvind Chhotalal Morzaria 66 AADHA7870F Ashok Jain Huf 67 AAAPB5499G Balchand Jain 68 AEFPS6298M Brij Bhushan Singal 69 ABAPL3679D Brijesh Chowdhary Lavu 70 ADPPR2047A Damji Anandji Rambhia 71 AAAPP9409N Gopal Nihchaldas Pariani 72 AAAHH5526G Haresh Rawani Huf 73 AEIPG1584P Hemant Jayant Gogri 74 AAEPS8716P Hirji Morarji Shah 75 AJLPC9910H Jay Hansraj Chheda 76 AAIPS4820L Kantilal Lalji Shah 77 AADPB1550B Kaushal Kanhayalal Bagadia 78 ACMPM6181A Kishor Pranjivan Mehta 79 AEUPB2920C Kunal Ramesh Babani 80 AAQPS5640E Lata V Shah 81 AEBPM1654H Mahendra Bmittal 82 AACPP0931H Mahendra Pandhi 83 AAEPG6125C Mayur Ishvardas Gandhi 84 AABPM6332L Miglani Anuj Rajinder 85 AAJPI8348E Monesh Israni 86 AALPS7124C Nareshkumar Kishanlal Saraf 87 AFPPM2107Q Neelam Mor 88 AAAPV9144N Neena Sudhir Vora 89 ADSPA3332J Neha Bansal 90 AACPG7709G Pankaj Dhanji Goshar 91 BGGPM9415G Peeyush Makhija 92 ACHPB0564H Poojamahendra Mittal 93 AAEPS7956D Poonam Kaushal Bagadia 94 AABPS7441L Pradip Damji Shah 95 AAHHP7899B Prakash Hiralal Jain Huf 96 ABAPA2027N Praveen Kumar Arora 97 APZPV0747H Prithvi Sudhir Vora 98 AADPR1704M Priyanka Haresh Rawani 99 ARIPS3477L Priyanka Miglani 100 AAZPM0573H Rajesh Champaklal Mehta 101 ABSPJ2879F Rajesh Durgashankar Joshi 102 ABHPA9244J Sadha Rani 103 AATHS9775H Sanjay Dnyaneshwer Nikam Huf 104 ADQPT9711L Santosh Yashwant Tandel Order in the matter of Pine Animation Limited

S.NO. PAN NAME 105 AEJPB6903J Savita Bansal 106 AKYPB3382J Sharan Mohan Babani 107 ALVPM6130D Sunny Mirchandani 108 AAACT8706B Tvc Shares Stock & Investment Pvt Ltd 109 AAAPH6194E Vasudev Mahirwan Hemrajani EXIT PROVIDERS 110 BABPS7447D Amit Singh 111 AAJCA1784D Anjali Suppliers Private Limited 112 AALCA7880J Antaryamini Traders Private Limited 113 AAJCA4459K Apex Commotrade Private Limited Ltd 114 AABCB3052B Bazigar Trading Private Limited 115 AAFCB0211J Blue Horizon Commosales Private Limited 116 AABCB0636K Bsr Finance And Construction Ltd 117 AABCB2575P Burlington Finance Limited 118 AAECC9285A Cheroot Vanijya Pvt Ltd 119 AADCD7140G Devatma Distributors Private Limited 120 AADCD6028P Dhanraksha Vincom Private Limited 121 AAECD8235D Dhlriti Traders Private Limited 122 AAECD8010E Dhyaneshwar Dealers Pvt Ltd 123 AABCD8146J Divya Drishti Traders Pvt Ltd 124 AABCD8147K Divyadrishti Merchants Pvt Ltd 125 AADCD7017J Dove Suppliers Pvt Ltd 126 AAECD5782B Dreamlight Exim Private Limited 127 AADCD0633J Dreamvalley Trading Private Limited 128 AAECD9323N Duari Marketing Private Limited 129 AAACE2862P Esha Securities Ltd 130 AABCF5486H Function Financial Consultants Private Limited 131 AAFCG2554B Gajgamini Merchandise Private Limited 132 AAFCG5351A Gangeshwari Traders Private Limited 133 AAFCG4773J Goldensight Traders Private Limited 134 AADCH3599R Hanshika Dealers Private Limited 135 AACCH8885R Helot Properties Private Limited 136 AACCH4303G Helpful Investment Advisory Private Limited 137 AADCI5139E Indrawati Nirman Pvt Ltd 138 AAECK7329P Kapeeshwar Vintrade Pvt Ltd 139 AACCL3868N Ladios Trading Private Limited 140 AADCR9508C Linus Holdings Ltd 141 AAICM4750C Mobixa Distributors Private Limited 142 AAICM6982C Muchmore Vincom Private Limited 143 AACCN9567A Navdurga Investment Consultants Pvt Ltd Order in the matter of Pine Animation Limited

S.NO. PAN NAME 144 AABCO2236J Orchid Solution Private Limited 145 AABCO6950F Overload Financial Advisory Pvt Ltd 146 AAACL4269P Padma Impex Private Limited 147 AACCM6582E Pride Distillery Private Ltd 148 AAGCR6009M Ramya Mercantile Pvt Ltd 149 AAGCR1715E Rangan Vincom Private Limited 150 AAECR2312K Rangoli Distributors Private Ltd 151 AAFCR9881C Reachsmart Dealtrade Private Limited 152 AAGCR8144M Reachsmart Developers Private Limited 153 AAECR9858C Ridhi Vincom Private Limited 154 AAGCR8142P Rochak Vinimay Private Limited 155 AAGCR7017M Rochi Dealcom Private Limited 156 AAECR0580M Runicha Merchants Private Limited 157 ACIPS8803M S N Srinivasan 158 AAMCS1711P Sanklap Vincom P Ltd 159 AARCS9144H Sebika Commodities Pvt Ltd 160 AAPCS7850L Shivkhori Construction Private Limited 161 AATCS3687H Sidhiman Vyapaar Private Limited 162 AAMCS1712Q Signet Vinimay Private Limited 163 AAICS0688K Skm Travels Private Limited 164 AAOCS2216D Spark Commodeal Private Limited 165 AAPCS7492G Spice Merchants Private Limited 166 AAJCS0597G Swarna Pushpa Vanijya Private Limited 167 AATCS6718D Swarnprakash Traders Private Limited 168 AADCS5411K Symphony Merchant Pvt Ltd 169 AADCT8403C Topwell Properties Private Limited 170 AAACV8378B Vibgyor Financial Servicepvt Ltd 171 AAECV4988P Vishnudham Marketing Private Limited 172 AAACW8004B Winall Vinimay Private Limited Ltd LTP CONTRIBUTORS 173 AESPN9474K Nellakkara Raghunath 174 AFAPN8764M Prem Lata Nahar 175 AAFHD9092L Dhirendra Kumar Gupta And Sons Huf 176 AAACJ8428J J M S Financial Services Ltd. 177 AJSPS5543F Sanjay Kumar Shah 178 BGGPS9416R Rajesh Kumar Shukla 5. The directions issued against Mr. Rajesh Kumar Shukla (entity at serial no. 178) were revoked vide SEBI’s Order dated August 22, 2016.

Order in the matter of Pine Animation Limited

6. The directions issued against Mr.Kirshnakumar Omprakash Murarka (entity at serial no. 3) were revoked vide SEBI’s Order dated June 02, 2017.

7. The directions against the remaining 176 entities were confirmed vide Orders dated June 02, 2016, July 05, 2016, August 22, 2016, and June 02, 2017.

8. Pursuant to the interim order, SEBI conducted a detailed investigation of the entire scheme employed in the instant matter, connection amongst the debarred entities, funds used for the price manipulation of the scrip of PAL, etc., so as to ascertain the violation of securities laws.

9. Upon completion of investigation by SEBI, the following are noted as regards 114 entities who were identified as Preferential Allottees, Exit Providers and LTP Contributors vide the interim order:  SEBI’s investigation did not find any adverse evidence against them to show any connection/nexus with PAL or its Promoters/Directors or Promoter related entities or any role in price manipulation volume manipulation in the scrip of PAL. Hence, violation of provisions of SEBI Act, SCRA, PFUTP Regulations, etc., were not observed in respect of the following 114 entities.

Sl. Name PAN No. Preferential Allottees 1 Anil Kumar Kasaraneni AGMPK5927A 2 Anil Vishanji Dedhia AABPD9375L 3 Anilkumar Chamanlal ADZPC5979N 4 Ankit Rajiderkumar Miglani AACPM1902D 5 Anmol Prakash Babani AEUPB3427L 6 Archana Miglani AREPS5118G 7 Archana Saluja AANPS2300L 8 Balchand Jain AAAPB5499G 9 Brij Bhushan Singal AEFPS6298M 10 Brijesh Chowdhary Lavu ABAPL3679D 11 Damji Anandji Rambhia ADPPR2047A

Order in the matter of Pine Animation Limited

Sl. Name PAN No. 12 Gopal Nihchaldas Pariani AAAPP9409N 13 Haresh Rawani HUF AAAHH5526G 14 Hemant Jayant Gogri AEIPG1584P 15 Hirji Morarji Shah AAEPS8716P 16 Jay Hansraj Chheda AJLPC9910H 17 Kantilal Lalji Shah AAIPS4820L 18 Kaushal Kanhayalal Bagadia AADPB1550B 19 Kishor Pranjivan Mehta ACMPM6181A 20 Kunal Ramesh Babani AEUPB2920C 21 Mahendra Bmittal AEBPM1654H 22 Mahendra Pandhi AACPP0931H 23 Mayur Ishvardas Gandhi AAEPG6125C 24 Miglani Anuj Rajinder AABPM6332L 25 Monesh Israni AAJPI8348E 26 Nareshkumar Kishanlal Saraf AALPS7124C 27 Neelam Mor AFPPM2107Q 28 Neena Sudhir Vora AAAPV9144N 29 Neha Bansal ADSPA3332J 30 Pankaj Dhanji Goshar AACPG7709G 31 Peeyush Makhija BGGPM9415G 32 Poojamahendra Mittal ACHPB0564H 33 Poonam Kaushal Bagadia AAEPS7956D 34 Prakash Hiralal Jain HUF AAHHP7899B 35 Praveen Kumar Arora ABAPA2027N 36 Prithvi Sudhir Vora APZPV0747H 37 Priyanka Haresh Rawani AADPR1704M 38 Priyanka Miglani ARIPS3477L 39 Rajesh Champaklal Mehta AAZPM0573H 40 Sadha Rani ABHPA9244J 41 Sanjay Dnyaneshwer Nikam HUF AATHS9775H 42 Santosh Yashwant Tandel ADQPT9711L 43 Savita Bansal AEJPB6903J 44 Sharan Mohan Babani AKYPB3382J 45 Sunny Mirchandani ALVPM6130D 46 Tvc Shares Stock & Investment Pvt Ltd AAACT8706B 47 Vasudev Mahirwan Hemrajani AAAPH6194E 48 Ashok Jain HUF AADHA7870F 49 Lata V Shah AAQPS5640E Exit Providers 50 Amit Singh BABPS7447D 51 Anjali Suppliers Private Limited AAJCA1784D Order in the matter of Pine Animation Limited

Sl. Name PAN No. 52 Antaryamini Traders Private Limited AALCA7880J 53 Apex Commotrade Private Limited Ltd AAJCA4459K 54 Bazigar Trading Private Limited AABCB3052B 55 Blue Horizon Commosales Private Limited AAFCB0211J 56 Bsr Finance And Construction Ltd AABCB0636K 57 Burlington Finance Limited AABCB2575P 58 Cheroot Vanijya Pvt Ltd AAECC9285A 59 Devatma Distributors Private Limited AADCD7140G 60 Dhanraksha Vincom Private Limited AADCD6028P 61 Dhlriti Traders Private Limited AAECD8235D 62 Dhyaneshwar Dealers Pvt Ltd AAECD8010E 63 Divya Drishti Traders Pvt Ltd AABCD8146J 64 Divyadrishti Merchants Pvt Ltd AABCD8147K 65 Dove Suppliers Pvt Ltd AADCD7017J 66 Dreamlight Exim Private Limited AAECD5782B 67 Dreamvalley Trading Private Limited AADCD0633J 68 Duari Marketing Private Limited AAECD9323N 69 Esha Securities Ltd AAACE2862P 70 Function Financial Consultants Private Limited AABCF5486H 71 Gajgamini Merchandise Private Limited AAFCG2554B 72 Gangeshwari Traders Private Limited AAFCG5351A 73 Goldensight Traders Private Limited AAFCG4773J 74 Hanshika Dealers Private Limited AADCH3599R 75 Helot Properties Private Limited AACCH8885R 76 Helpful Investment Advisory Private Limited AACCH4303G 77 Indrawati Nirman Pvt Ltd AADCI5139E 78 Kapeeshwar Vintrade Pvt Ltd AAECK7329P 79 Ladios Trading Private Limited AACCL3868N 80 Linus Holdings Ltd AADCR9508C 81 Mobixa Distributors Private Limited AAICM4750C 82 Muchmore Vincom Private Limited AAICM6982C 83 Navdurga Investment Consultants Pvt Ltd AACCN9567A 84 Orchid Solution Private Limited AABCO2236J 85 Overload Financial Advisory Pvt Ltd AABCO6950F 86 Padma Impex Private Limited AAACL4269P 87 Pride Distillery Private Ltd AACCM6582E 88 Ramya Mercantile Pvt Ltd AAGCR6009M 89 Rangan Vincom Private Limited AAGCR1715E 90 Rangoli Distributors Private Ltd AAECR2312K 91 Reachsmart Dealtrade Private Limited AAFCR9881C 92 Reachsmart Developers Private Limited AAGCR8144M Order in the matter of Pine Animation Limited

Sl. Name PAN No. 93 Ridhi Vincom Private Limited AAECR9858C 94 Rochak Vinimay Private Limited AAGCR8142P 95 Rochi Dealcom Private Limited AAGCR7017M 96 Runicha Merchants Private Limited AAECR0580M 97 S N Srinivasan ACIPS8803M 98 Sanklap Vincom P Ltd AAMCS1711P 99 Sebika Commodities Pvt Ltd AARCS9144H 100 Shivkhori Construction Private Limited AAPCS7850L 101 Sidhiman Vyapaar Private Limited AATCS3687H 102 Signet Vinimay Private Limited AAMCS1712Q 103 Skm Travels Private Limited AAICS0688K 104 Spark Commodeal Private Limited AAOCS2216D 105 Spice Merchants Private Limited AAPCS7492G 106 Swarna Pushpa Vanijya Private Limited AAJCS0597G 107 Swarnprakash Traders Private Limited AATCS6718D 108 Symphony Merchant Pvt Ltd AADCS5411K 109 Topwell Properties Private Limited AADCT8403C 110 Vibgyor Financial Servicepvt Ltd AAACV8378B 111 Vishnudham Marketing Private Limited AAECV4988P 112 Winall Vinimay Private Limited Ltd AAACW8004B LTP Contributors 113 J M S Financial Services Ltd. AAACJ8428J 114 Sanjay Kumar Shah AJSPS5543F

10. Considering the fact that there are no adverse findings against the aforementioned 114 entities with respect to their role in the manipulation of the scrip of PAL, I am of the considered view that the directions issued against them vide interim order dated May 08, 2015 which were confirmed vide Orders dated June 02, 2016, July 05, 2016, August 22, 2016, and June 02, 2017 need not be continued.

11. 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 Orders dated June 02, 2016, July 05, 2016, August 22, 2016, and June 02, 2017 qua aforesaid 114 entities (paragraph 9 above) with immediate effect.

Order in the matter of Pine Animation Limited

12. The revocation of the directions issued vide the abovementioned orders (at paragraph 11) is only in respect of the entities mentioned at paragraph 9 of this order in the matter of Pine Animation Limited. As regards remaining entities in the scrip of PAL, violations under SEBI Act, SCRA, PFUTP Regulations, etc., were observed and SEBI shall continue its proceedings against them. Hence, the directions issued vide Orders dated July 05, 2016, August 22, 2016, and June 02, 2017 against the remaining 62 entities shall continue.

13. A copy of this Order shall be served on the Stock Exchanges and Depositories, for necessary action.

DATE: SEPTEMBER 19, 2017 MADHABI PURI BUCH PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA

Order in the matter of Pine Animation Limited