BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA

CORAM: V K CHOPRA

WTM/VKC/MIRSD/DPS-1/110/07

ORDER

(UNDER SECTION 11(1), SECTION 11(4) (b), AND SECTION 11B OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992)

IN THE MATTER OF M/S ABHIPRA CAPITAL LTD.

1. By an interim order dated 29/10/2007 M/s Abhipra Capital Ltd ((hereinafter referred to as ‘ACL’) was directed as follows, for the detailed reasons stated therein;

  

i) As it is evident from the findings of the inquiry that sales proceeds of 449 shares of ACC and also the sales proceed of shares of 29 companies were not paid to the complainant, NSE is advised to deduct the amount equivalent to the current market price of the above mentioned shares from the deposits of the ACL and retain the same in a separate account till the full and final settlement of the matter.

ii) The Enquiry Officer appointed by Board shall ensure the speedy completion of the enquiry proceedings and submit the Enquiry Report with its recommendations to the Board at the earliest. The Board after receiving of the Enquiry Report shall take all measure to pass its final order as early as possible. ACL is also directed to co-operate with the concerned authorities for early completion of the enquiry proceedings.

iii) ACL to submit documentary evidences for settlement of the dues of Johari’s to SEBI within 30 days.

2. ACL vide letter dated 13. 11. 2007 has stated that pursuant to the direction given by SEBI vide order dated 29.10.2007 the complainant i.e. Mr. Johari  was approached orally and in writing for the settlement of the claim but no response is received from him.

3. I have carefully considered the representation made by ACL. I note that there is a dispute between ACL and the complainant. The complainant has not filed arbitration cases against ACL before NSE. Pursuant to the complaint SEBI passed an exparte order dated 17.08.2007 interalia directing that “NSE is advised to deduct the amount equivalent to the current market price of the above mentioned shares from the deposits of the ACL and retain the same in a separate account till the full and final settlement of the matter”. I have also noted that the said direction was complied with. Besides the above, an enquiry officer was also appointed on 13.08.2007 to enquire into the charges made against the ACL in this regard and the said enquiry is in progress. In the fact and circumstances, therefore, it would be in the interest of justice to wait for the outcome of the enquiry. As such it may not be appropriate to impose 30 days time limit on ACL to submit documentary evidence for the settlement of dues of Johari’s as directed in the interim order dated 29/10/2007.

4. Therefore, I hereby modify the said interim order dated 29.10.2007 by lifting the 30 days time stipulated therein. However, ACL shall proceed with settling the dues of Johari’s without waiting for completion of the enquiry.

5. This order shall come into force with immediate effect.

 

 

PLACE: MUMBAI DATE  : 19.11.2007

--sd-- V.K.CHOPRA WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA