To
All Trading Members of the Exchange
Sub: Clarification to the confirmatory Order dated August 26, 2016 bearing reference number WTM/RKA/ISD/116/2016 in the matter of Mishka Finance And Trading Limited in view of the representation made by Mr. Nitinkumar Dindayal Didwania.
Attention of the trading members is invited to the Exchange Notice No. 20160826-37 dated August 26, 2016 confirming the directions issued vide its ad-interim ex-parte Order No WTM/RKA/ISD/30/2015 dated April 17, 2015 (issued vide Exchange Notice No.20150417-38 dated April 17, 2015) restraining 129 entities, including Mr. Nitinkumar Dindayal Didwania from accessing the securities market and buying, selling or dealing in securities, either directly or indirectly, in any manner, till further directions.
SEBI now, vide its Order no. WTM/RKA/ISD/131/2016 dated September 26, 2016 has hereby clarified the following qua the aforesaid entity :
1. The confirmatory order does not place any restriction as regards to whom the securities can be sold by the entities. The only condition in that regard is that the proceeds of any sale have to be kept in an interest bearing escrow account with a nationalized bank and the utilization of the sale proceeds has to be in accordance with paragraph 84 read with paragraph 85 of the confirmatory order. Thus, an entity is free to sell the securities lying in its demat account(s) (as on the date of the interim order) to any entity including a promoter or non-promoter.
2. An entity can pledge the securities lying in its demat account(s) subject to the condition that the stipulation in paragraph 85(b) of the confirmatory order is adhered at all times.
3. In terms of paragraph 84 (e) of the confirmatory order, the entities can avail the benefits of corporate actions. Thus, if an entity is a shareholder of a listed company, it can infuse funds in the company by subscribing to securities in any kind of issuance of securities by the company permitted by law including a further public offer, rights issue, preferential issue, qualified institutional placement and bonus issue.
4. A debarred entity can also buy shares in the companies and in the manner specified in paragraph 84(a) of the confirmatory order irrespective of the fact whether he/she/it is already a shareholder in the said companies or not.
A copy of the said order is attached herewith and also available on the SEBI website www.sebi.gov.in.
Trading members are advised to take note of the same and ensure compliance.
Ena Janvalekar Shaila Valsan
Sr. Manager Manager
Surveillance Surveillance
Date: September 26, 2016 |