Sebi confirms order against Pan Asia Advisors, Arun Panchariya

Market regulator Sebi today confirmed its earlier directive barring Pan Asia Advisors Limited and the firm's promoter Arun Panchariya from dabbling in the securities market over their alleged involvement in manipulation of Global Depository Receipts."Arun Panchariya was prima facie found to have been connected with the entities involved in the alleged manipulation in one or the other way. Given this chain of events and circumstances, the preponderance of probability at this stage suggests the involvement of Pan Asia and Arun Panchariya in the alleged scheme of things...," Sebi said in an order."In view of the foregoing... hereby confirm the directions issued vide the ad interim ex-parte order dated September 21, 2011, against Pan Asia Advisors Limited and Arun Panchariya in the matter of alleged market manipulation using GDR issues," it said.The regulator had in September last year barred Pan Asia Advisors and Arun Panchariya from "rendering services in connection with instruments that are defined as securities in the Indian securities market or in any way dealing with them, with immediate effect."The case relates to large scale off-market transactions in scrips of a few companies -- IKF Technologies, Avon Corporation, CAT Technologies, Asahi Infrastructure and K Sera Sera.Sebi was alerted that Foreign Institutional Investors were converting the Global Depository Receipts underlying the shares of the companies held by them into equity shares to sell in the Indian market and most cancellations happened within a short period of time of their issue.Some other distortions were also observed and the Securities and Exchange Board of India had conducted an investigation into the matter.Preliminary findings had pointed toward an elaborate scheme to manipulate trading in these securities. It was also found that Pan Asia was the manager or arranger to almost all of the issues and that the proceeds of the GDR issues were deposited in European American Investment Bank AG ( Euram Bank ), Austria Sebi's September, 2011, order was challenged by Panchariya and Pan Asia before the Securities Appellate Tribunal.SAT, while disposing of the appeal in November last year, had directed Sebi to pass a final order within four weeks on all issues raised by the appellants. However, Panchariya and Pan Asia had sought additional time to file written submissions, which was granted.Among other things, Panchariya and Pan Asia had said that Sebi has no jurisdiction to pass an order against them.