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NOTICES
Notice No.   20211014-33   Notice Date   14 Oct 2021
Category   Compliance   Segment   General
Subject   Order in the Matter of GDR Issue of Edserv Softsystems Limited.
Attachments   Order in the Matter of GDR Issue of Edserv Softsystems Limited.pdf ;
Content

To

 

All Trading Members of the Exchange

 

Sub: ORDER Under Sections 11, 11(4) and 11B of the Securities and Exchange Board of India Act, 1992 in the matter of GDR Issue of Edserv Softsystems Limited.

 

SEBI vide its order no. WTM/GM/IVD/ID4/13744/2021-22 dated October 14, 2021 has inter-alia issued following directions:

 

  • Noticee No. 1 (G. Giridharan), Noticee No.2 (G. Gita) shall be restrained from accessing the Indian securities market, and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, and associating with the securities market in any manner, whatsoever, for a period of 3 years.

 

  • Noticee No.5 ( Arun Panchariya) shall be restrained from accessing the Indian securities market, and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, and associating with the securities market in any manner, whatsoever, for a period of 10 years.

 

  • Noticee No. 6 ( Mukesh Chauradiya) shall be restrained from accessing the Indian securities market, and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, and associating with the securities market in any manner, whatsoever, for a period of 3 years.

 

  • Noticee No. 7 (Vintage FZE) shall be restrained from accessing the Indian securities market, and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, and associating with the securities market in any manner, whatsoever, for a period of 8 years.

 

  • Noticee No. 8 (Pan Asia Advisors) shall be restrained from accessing the Indian securities market, and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, and associating with the securities market in any manner, whatsoever, for a period of 8 years.

 

  • Noticee No. 9 (India Focus Cardinal Fund) and Noticee No. 10 (Highblue Sky Emerging Market Fund) shall be restrained from accessing the securities market, and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, and associating with the securities market in any manner, whatsoever, for a period of 8 years.

 

  • Noticee No. 11 (Golden Cliff); Noticee No. 12 (KBC Aldini Capital Ltd.); and Noticee No. 13 (Cardinal Capital Partners) shall be restrained from accessing the securities market, and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, and associating with the securities market in any manner, whatsoever, for a period of 2 years.

 

  • Noticee No. 7(Vintage FZE), Noticee No. 8 (Pan Asia Advisors), Noticee No. 9 (India Focus Cardinal Fund) and Noticee No. 10 (Highblue Sky Emerging Market Fund) are further directed to disgorge illegal gains of a total gain of Rs. 12,85,90,978, made by way of sale of equity shares of Edserv along with interest of 12% per annum from February 20, 2013 till the payment of disgorgement amount, within a period of 45 days from the date of this order. As already stated, the liability of Nos. 7, 8, 9 and 10 to disgorge the said amount shall be joint and several. In the event, Noticee Nos. 7, 8, 9 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 the said 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, whichever is later.

 

  • In view of the findings in the Order, the present proceedings initiated against Noticee No. 3 (T.S. Ravichandran) and Noticee No. 4 (S.Arvind) vide the Show-cause Notice dated January 15, 2018 is disposed of without any directions.

 

  • The above directions shall come into force with immediate effect. The obligation of the Noticees debarred in the present 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, can take place irrespective of the restraint/prohibition imposed by this Order, only in respect of pending unsettled transactions, if any. Further, all open positions, if any, of the Noticees debarred in the present Order, in the F&O segment of the Stock Exchanges, are permitted to be squared off, irrespective of the restraint/prohibition imposed by this Order.

 

  • The period of debarment as directed by way of this Order shall run concurrently in respect of any Noticee, as mentioned in 7.1 above, who may already be undergoing any period of debarment with respect to the issue of GDRs.

 

 

This 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                                                                                            Rohan Shetty

Asst.General Manager                                                                               Assistant Manager    

Regulatory Correspondence                                                                    Surveillance

 

Date: October 14, 2021