SAT upholds Sebi order against Pan Asia Advisors

The Securities Appellate Tribunal (SAT) today upheld Sebi 's order that barred Pan Asia Advisors and its promoter Arun Panchariya from the capital market for 10 years for market manipulation using global securities issued by six Indian companies.The Securities and Exchange Board of India (Sebi) in June barred Pan Asia Advisors and its promoter from accessing the capital market, directly or indirectly, for 10 years.These entities were found to have been involved in dabba trading, or off-market transactions.The case relates to irregularities that were observed in issuance of global depository receipts of Asahi Infrastructure and Projects, Avon Corporation, Cat Technologies, IKF Technologies, K Sera Sera and Maars Software International."The decision of Sebi that appellants (Pan Asia Advisors and Panchariya) in connivance with issuer companies have committed fraud upon the investors in India and therefore, as persons associated with the transactions in the securities market in India," SAT said in an order today."...appellants are liable for action under Sebi Act, 1992 and the regulations made thereunder cannot be faulted," it added.The Tribunal further said "Questions raised in the appeal are answered in the affirmative, ie in favour of Sebi and against appellants."Under the fraudulent scheme, Panchariya arranged loans for the subscription to GDRs, subscribed to GDRs, and sold them to Foreign Institutional Investors (FIIs)/Sub accounts who, in turn, sold shares received from conversion of GDRs in Indian securities market, Sebi had said.Pan Asia and Panchariya, by employing fraudulent arrangement with regard to the subscription of GDRs and thereafter monetising them through the sale of underlying shares of the GDRs, have violated various rules, it said.