sebi:SEBI/WTM/SR/EFD-DRA-II/43/07/2017
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Facts / Headnote
Noticees prohibited from collecting fresh funds and restrained from accessing the securities market and from buying, selling or otherwise dealing in securities directly or indirectly or being associated with the securities market in any manner and from associating with any SEBI-registered intermediary in any official capacity for a period of ten (10) years from the date of the Order.
Provisions invoked
- s. 19
- s. 12(1)
- s. 12A
- s. 12
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(b)
- Reg. 2(1)
- Reg. 16
Parties
- Finosys Securities
- Reliable Securities
- Good Time Securities
- Global Securities
- Tradefast Securities
- Mr. Vaibhav Gandhi (Partner in Finosys Securities and Reliable Securities)
- Mr. Amit Gandhi (Partner in Finosys Securities)
- Ms. Asha Gandhi (Partner in Reliable Securities)
Holding
Finosys, Reliable, Goodtime and Global acted as unregistered stock brokers and Tradefast acted as unregistered depository participant and portfolio manager/advisor while making false registration claims and issuing fake contract notes, thereby violating Section 12(1) and Section 12A(a)-(c) read with PFUTP Regulations 3(b)-(d) and 4(1) and 4(2)(k); all Noticees including partners were restrained from the securities market for ten years.
Full text
Page 2 of 14 2.2 Thereafter, SEBI conducted a preliminary examination in the matter and found that the aforesaid Noticees were maintaining websites wherein they claimed to be active in stock/commodities broking activities. The preliminary findings against the said Noticees inter alia were as under:
Page 3 of 14 indicated a scheme, plan, device or artifice that is fraudulent as defined in Regulation 2(1) (c) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (“PFUTP Regulations"). The Noticees were therefore alleged to have violated the provisions of Section 12A (a) (b) and (c) of the Act and provisions of Regulation 3 (b), (c) and (d) and Regulation 4(1) and 4(2) (k) of the PFUTP Regulations.
Page 4 of 14 ii. Whether the Noticee Tradefast acted as depository participant and provided advisory services and portfolio management services without obtaining necessary SEBI registration under the relevant Regulations thereby violating the provisions of Section 12 (1) of the SEBI Act read with Regulation 16 of the Depositories and Participants Regulations and Regulation 3 of the Portfolio Managers Regulations,
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Source: SecMarx — sebi:SEBI/WTM/SR/EFD-DRA-II/43/07/2017. 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.