sebi:AO/SKS/DL/AO-1/2021
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Facts / Headnote
Violations established against all 8 Noticees; monetary penalty imposed aggregating to Rs. 1 Crore and Sixty Five Lakhs (Rs. 1,65,00,000) on Noticees 01 to 08
Provisions invoked
- s. 11(4)
- s. 15
- s. 12(1)
- s. 12A
- s. 12
- s. 27
- s. 15J
- s. 15H
- s. 15A
- s. 11C
- s. 28A
- s. 23A
- s. 23J
- s. 23
- s. 23H
- s. 23D
- s. 23C
Regulations
- Reg. 3
- Reg. 6
- Reg. 4(1)
- Reg. 3(a)
- Reg. 9
- Reg. 9(e)
- Reg. 14(3)(a)
- Reg. 9(b)
- Reg. 4(2)(m)
Parties
- Kassa Finvest Private Limited (Noticee No. 1)
- Mr. Ashok Kumar (Noticee No. 2)
- Mr. Umashankar Sharan Srivastava (Noticee No. 3)
- Ms. Anjana Kumar (Noticee No. 4)
- Mr. Siddharth Shankar (Noticee No. 5)
- Ms. Nikita/Neetika Shankar (Noticee No. 6)
- Mr. Anil Kumar Dhawan (Noticee No. 7)
- Noticee No. 8
Holding
The Adjudicating Officer held that Kassa Finvest Private Limited (Noticee No. 1) violated multiple provisions of the SEBI Act, SCRA, Stock Broker Regulations, PFUTP Regulations and SEBI Circulars by failing to segregate own and clients' funds/securities, misutilizing and misappropriating clients' funds and securities, and failing to redress investor complaints. Noticees 2-4 were held liable as key persons behind the fraud, Noticees 5-6 as beneficiaries of siphoned funds, and Noticees 7-8 for collusion, with a total penalty of Rs. 1,65,00,000 imposed on all Noticees.
Full text
Adjudication order in the matter of Kassa Finvest Private Limited Page 2 of 56 I. BACKGROUND 1) Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) received several complaints against Kassa Finvest Private Limited (hereinafter referred to as “Kassa Finvest”/ “Noticee No. 1”) from its clients during the year
Adjudication order in the matter of Kassa Finvest Private Limited Page 3 of 56 respective names /notice number and collectively referred to as the “Noticees”) in the matter of Kassa Finvest Private Limited.
Adjudication order in the matter of Kassa Finvest Private Limited Page 4 of 56 and 15HB of the SEBI Act, 1992 and Section 23A, 23C, 23D and 23H of the SCRA, 1956 be not imposed on them for the violations alleged and specified in the said SCN. Further, another show cause notice dated November 04, 2016 bearing ref. no. SEBI/NRO/OW/AO/SKS/2040/2016 was issued to Noticee No. 5-8 in terms of Rule 4(1) of the Adjudication Rules, 1995 and Rule 4(1) of the Adjudication Rules, 2005, to show cause as to why adjudication should not be held against them and why penalty under sections 15HA and 15HB of the SEBI Act, 1992 be not imposed on them for the violations alleged and specified in the said SCN. In these SCNs dated November 04, 2016, inadvertently, reference was made to Rule 3 of the Adjudication Rules 1995 and 2005.
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Source: SecMarx — sebi:AO/SKS/DL/AO-1/2021. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.