To
All Trading Members of the Exchange
Sub: Final Order Under Sections 11, 11(4) and 11B of the Securities and Exchange Board of India Act, 1992, In the matter of Aqua Logistics Limited.
SEBI vide its order no. WTM/AB/EFD/DRA-I/19/2021-22 dated July 22, 2021 has inter-alia issued following directions:
- The present proceedings initiated against Aqua Logistics Limited (Noticee no. 1) vide SCN dated October 01, 2018, stands disposed of, in view of Order dated January 04, 2013, passed by the Hon’ble High Court of Bombay directing winding up of Noticee no. 1 and appointing Official Liquidator of Bombay High Court as the liquidator to Noticee no. 1.
- In the event, order for winding up passed by the Hon’ble High Court of Bombay is recalled, for any reason whatsoever, resulting in reversal of said winding up proceedings, then in such eventuality, Noticee No. 1 shall be restrained from accessing the securities market and also remain prohibited from buying, selling or dealing in securities, directly or indirectly, in any manner whatsoever or being associated with the securities market in any manner, whatsoever, for a period of 3 years from the date of such reversal of winding up order.
- Noticees No. 2, 3 and 4 are hereby restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities including units of mutual funds, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of 2 years from the date of this order.
- Noticee No. 5 and Noticee no. 12, are hereby restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities including units of mutual funds, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of 3 years from the date of this order.
- Noticee no. 6, 7, 8, 9, 10 and 11, are hereby restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities including units of mutual funds, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of 2 year from the date of this order.
- Noticee no. 5, 6 and 10 are further directed to disgorge illegal gains of Rs. 88,15,000/-, made by way of sale of equity shares (after conversion of GDRs) of AQUA by Noticee no. 10, along with interest of 12% per annum from the date of sale of those equity shares till the payment of disgorgement amount, within a period of 45 days from the date of this order. Having regard to the close connection and role played, the liability of Noticee no. 5, 6 and 10, as discussed in para 49, shall be joint and several. In case Noticee no. 5, 6 and 10 fail to comply with the said direction, SEBI shall be free to recover the said amount from the Noticees under Section 28A of SEBI Act, 1992 and these Noticees shall also be restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in the securities market, till the actual payment or recovery of disgorgement amount or till the completion of the debarment directed, to the respective noticees herein at sub-paras (d) and (e) above, whichever is later. This direction is without prejudice to any other action against these Noticees which may be initiated by SEBI.
- During the period of restraint, the existing holding of securities including units of mutual funds of the Noticees shall also remain frozen. However, the obligation of the Noticees, restrained/prohibited by this Order, in respect of settlement of securities, if any, purchased or sold in the cash segment of the recognized stock exchange(s), as existing on the date of this Order, are allowed to be discharged irrespective of the restraint/prohibition imposed by this Order, however, shall be subject to any other restraint order operating against these entity(ies). Further, all open positions, if any, of the Noticees, restrained/prohibited in the present Order, in the F&O segment of the recognised stock exchange(s), are permitted to be squared off, irrespective of the restraint/prohibition imposed by this Order, however, shall be subject to any other restraint order operating against these entity(iesThis Order is effective from the date of the order.
A copy of the said Order is attached herewith and available on the SEBI website www.sebi.gov.in.
Trading members are advised to take note of the same and ensure compliance.
Jeevan Noronha Roshani More
Asst.General Manager Deputy Manager
Regulatory Correspondence Surveillance
Date: July 22, 2021 |