WTM/RKA/ISD/32/2016

SECURITIES AND EXCHANGE BOARD OF INDIA

ORDER
UNDER SECTIONS 11 AND 11B OF THE SECURITIES AND EXCHANGE BOARD
OF INDIA ACT, 1992 - IN THE MATTER OF RADFORD GLOBAL LIMITED
In respect of:
Mr. Mohit Aggarwal (PAN: ADSPA9301K)
1. SEBI, vide an ad interim ex-parte order dated December 19, 2014 (hereinafter referred to as
interim order), restrained Radford Global Limited (hereinafter referred to as "Radford" or "the
company"), Mr. Mohit Aggarwal (the noticee herein) and 106 other entities from accessing
the securities market and further prohibited them from buying, selling or dealing in securities
in any manner whatsoever, till further directions.
2. The facts and circumstances leading to the passing of the said interim order have been discussed
therein and I do not deem it necessary to repeat the same and burden this order with
repetition. The modus operandi as described in the said interim order was that Radford, its
directors/promoters, preferential allottees, and Radford Group & Suspected Entities employed a
device wherein the company in nexus with the preferential allottees made a facade of preferential
allotment. After the expiry of the lock-in period, the Radford Group & Suspected Entities
purchased shares from preferential allottees at artificially increased prices. In the whole process,
entities of the Radford Group & Suspected Entities provided a hugely profitable exit to the
preferential allottees. Hence, the preferential allottees with the aid of the entities of the Radford Group
& Suspected Entities misused the stock exchange mechanism to exit at a high price in order to
book illegitimate gains with no payment of taxes as long term capital gain (LTCG) is tax
exempt.
3. At paragraph 35 of the interim order the entities, including Mr. Mohit Aggarwal, have been
advised that they may file their objections, if any, within twenty one days from the date of this
interim order and, if they so desire, may avail themselves of an opportunity of personal hearing
before SEBI, on a date and time to be fixed on a specific request, received from them.
4. I further note that suo motu an opportunity of personal hearing was granted to Mr. Mohit
Aggarwal on July 15, 2015. The noticee was also informed that if he did not appear for the
personal hearing on the said date, it would be presumed that he had no further submissions to
make in the matter and the matter shall be further proceeded with, including passing of
appropriate directions on the basis of the material available on record. Mr. Mohit Aggarwal
Order in the matter of Radford Global Limited

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neither responded to the hearing notice nor appeared during for the personal hearing.
Another opportunity of personal hearing was also granted to the noticee on January 14, 2016.
However, the notice for hearing returned as undelivered.
5. It is important to mention that though more than fifteen months have elapsed since the
passing of the interim order the noticee has chosen not to respond to the hearing notice as well
as not to submit his reply. In my view, sufficient time and opportunity has been provided to
the noticee to respond to the interim order and to appear before me during the personal
hearings. In view of these facts and circumstances, I am of the view that the principle of
natural justice has been fully complied with qua the noticee and he is deliberately keeping
away from these proceedings and not willing to cooperate in these proceedings. I, therefore,
proceed to decide the matter at this stage on the basis of the material available on record.
6. I have considered the findings against the noticee in the interim order and have perused the
material available on record. I note that in the instant case, the directions issued against the
noticee are interim in nature and have been issued on the basis of prima facie findings. SEBI had
issued directions vide the interim order in order to protect the interests of investors in the
securities market. I note that investigation in the matter is in progress and appropriate
decision, in accordance with law, would be taken after completion thereof. Thus, the issue for
consideration at this stage is whether the directions qua the noticee in the interim order needs to
be confirmed, vacated or modified in any manner, during pendency of investigation in the
matter.
7. The facts and circumstances of the instant case as brought out in the interim order prima facie
shows the modus operandi employed by Radford, their directors, their promoters, preferential
allottees, Radford Group & Suspected Entities, wherein the companies in nexus with the
preferential allottees made a faade of preferential allotment ostensibly to raise money. The
preferential allottees with the aid of the entities of Radford Group & Suspected Entities misused
the stock exchange mechanism to exit at a high price in order to book illegitimate gains with
no payment of taxes as long term capital gain (LTCG) is tax exempt. Further, para 16 and
17 of the interim order describe the manner in which preferential allottees sold their shares and
made huge profit in the whole event.
8. As prima facie found in the interim order, Radford, its directors/promoters, preferential allottees, and
Radford Group & Suspected Entities have acted in connivance for implementation of dubious
plan, device and artifice that has led to the misuse of stock exchange mechanism to artificially
increase price and volume of the scrips to provide illegitimate gains to the preferential
allottees in order to claim LTCG benefits that has not only eroded the market integrity but
has also been detrimental to the interests of investors who might have been lured to invest in
the scrips due to such manipulative and fraudulent trading in the scrips and price movement.

Order in the matter of Radford Global Limited

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9. I find that the noticee has failed to make out a prima facie case for revocation or modification
of the interim order and the material available on record justifies the continuation of the
directions passed against him under the ad interim ex-parte order dated December 19, 2014.
10. Considering the facts and circumstances of this case, I am of the view that the restraint
imposed against the noticee by the interim order cannot be removed at this stage. I, therefore,
in exercise of the powers conferred upon me under section 19 of the SEBI Act, read with
sections 11(1), 11(4) and 11B thereof, hereby confirm the directions issued vide the ad interim
ex-parte order dated December 19, 2014 against Mr. Mohit Aggarwal, the noticee herein.
11. A copy of this order shall be served on all recognized stock exchanges and depositories to
ensure compliance with above directions.
Sd/DATE: MARCH 18th, 2016
PLACE: MUMBAI

RAJEEV KUMAR AGARWAL

WHOLE TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA

Order in the matter of Radford Global Limited

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