Extension granted to sell shares of Indiabulls Ventures Ltd. due to the prevailing COVID-19 pandemic

Last updated: 19 October 2020

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Quick Summary

The Securities and Exchange Board of India (SEBI) has granted an extension to Ms. Pia Johnson and Mr. Mehul Johnson to sell their shares in Indiabulls Ventures Limited. This extension was permitted because they were unable to complete the sale within the original timeframe, which was impacted by the prevailing COVID-19 pandemic. Previously, SEBI had issued an order restraining them from accessing the securities market for one year and from dealing in Indiabulls Ventures Limited securities for three years, along with disgorgement of impounded funds.

Court :
SEBI

Brief :
Order on the Representation dated September 16, 2020 made by Ms. Pia Johnson (PAN: AGVPJ6093M) and Mr. Mehul Johnson (PAN: ABBPJ3414H) pursuant to order dated February 24, 2020 passed by Hon’ble SAT in Misc. Application No. 61 of 2020 in Appeal No. 59 of 2020 – In the matter of Indiabulls Ventures Limited.

Citation :
WTM/AB/IVD/ID2/12/2020-21

WTM/AB/IVD/ID2/12/2020-21
SECURITIES AND EXCHANGE BOARD OF INDIA
MISCELLANEOUS ORDER

Order on the Representation dated September 16, 2020 made by Ms. Pia Johnson (PAN: AGVPJ6093M) and Mr. Mehul Johnson (PAN: ABBPJ3414H) pursuant to order dated February 24, 2020 passed by Hon’ble SAT in Misc. Application No. 61 of 2020 in Appeal No. 59 of 2020 – In the matter of Indiabulls Ventures Limited.

1. Ms. Pia Johnson and Mr. Mehul Johnson (hereinafter referred to as “the Representors”) have filed representation dated September 16, 2020 (hereinafter referred to as “the Representation”) as they could not affect the sale of shares within the time period granted to them in the Miscellaneous Order dated March 04, 2020 passed in the matter of Indiabulls Ventures Ltd.

2. Previously, the Securities and Exchange Board of India (hereinafter referred to as “SEBI”) passed a final order dated February 05, 2020 (hereinafter referred to as “Final Order”) against the Representors, inter alia, directing as under:
“…………………
50. In view of the aforesaid findings, I, in exercise of the powers conferred upon me under Section 11(1), 11(4) and 11B of the SEBI Act, 1992 read with Section 19 of the SEBI Act, 1992, hereby, directs, -

a. That Noticees shall remain restrained from accessing the securities market and from buying, selling or dealing in securities including the units of mutual funds, directly or indirectly, in any manner whatsoever, for a period of 1 year;

b. That Noticees shall remain restrained from buying, selling or dealing in the securities of the Indiabulls Ventures Limited, directly or indirectly, in any manner whatsoever, for a period of 3 years; and Order on the representation made by Ms. Pia Johnson and Mr. Mehul Johnson.

c. That the amount of Rs. 87,21,918.55/- which was impounded from the Noticees vide interim impounding order cum show cause notice dated May 09, 2019 stands disgorged and shall be remitted to Investor Protection and Education Fund (IPEF) referred to in Section 11(5) of the SEBI Act, 1992

To know more in details find the attachmnet file.

FAQ :

An extension was granted because the representors, Ms. Pia Johnson and Mr. Mehul Johnson, could not sell their shares within the initially granted time period, largely due to the impact of the COVID-19 pandemic.

The representation for the extension was filed by Ms. Pia Johnson and Mr. Mehul Johnson.

SEBI had previously ordered that the representors be restrained from accessing the securities market for one year and from dealing in Indiabulls Ventures Limited securities for three years. Additionally, an amount of Rs. 87,21,918.55 was to be disgorged to the Investor Protection and Education Fund.

September 16, 2020, is the date on which Ms. Pia Johnson and Mr. Mehul Johnson filed their representation requesting an extension to sell their shares.