sebi:SEBI/WTM/SR/EFD-DRA-II/66/09/2017
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticees restrained from dealing in securities either directly or indirectly or being associated with the securities market in any manner whatsoever with immediate effect till further directions and directed not to dispose of or alienate any assets except with prior permission of SEBI
Provisions invoked
- s. 24
- s. 19
- s. 12(1)
- s. 12A
- s. 12
- s. 28A
Regulations
- Reg. 4
- Reg. 11
- Reg. 3
- Reg. 6
- Reg. 4(1)
- Reg. 9
- Reg. 3(a)
- Reg. 9(e)
- Reg. 12A
- Reg. 9(b)
Holding
Kassa Finvest violated SEBI Broker Regulations and circulars by failing to segregate client funds/securities, siphoning client funds/securities to group persons/entities including via pledging client mutual fund units, failing periodic settlement and grievance redressal, and operating an assured-return scheme without registration. Its promoters/directors, compliance functionaries and recipient group persons/entities were held liable as beneficiaries/participants in violation of PFUTP Regulations.
Full text
Page 2 of 45 securities, either directly or indirectly, or being associated with the securities market in any manner whatsoever, with immediate effect, till further directions. The said Noticees were also directed not to dispose of or alienate any assets, whether movable or immovable, or create any interest or charge in any such assets except with the prior permission of SEBI.
Page 3 of 45 2.4 The shareholding of Kassa Finvest (as submitted by Mr. Ashok Kumar, Managing Director of Kassa Finvest) is as under: Sr. No. Name % of shareholding 1 Mrs. Anjana Kumar 51.56 2 M/s Mille Roses Ltd., Malta 26.00 3 M/s Doyen Vyapaar (P) Ltd. 12.44 4 Mr. Ashok Kumar 5.00 5 Dr. Umashankar Sharan Srivastava 5.00
Page 4 of 45 ii. Kassa Finvest failed to segregate its own funds and clients’ funds and misutilized funds/securities of their clients/investors, thereby siphoning off the funds/securities of their clients to their group persons/ entities, iii. Kassa Finvest failed to comply with the requirement of periodical settlement of client accounts (i.e. failure to deliver the securities/make payment to the investors). iv. Non-redressal of grievances of investors within one month of the date of receipt of the complaint. Kassa Finvest neither followed the orders of IGRP nor opted for the next level of resolution, i.e. arbitration. v. Kassa Finvest also violated various provisions of SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 including the Code of Conduct prescribed by the Regulations and SEBI Circulars prescribing Rights and Obligations of Stock Brokers. vi. The Promoters, Directors and employees of Kassa Finvest are liable for the acts of omission and commission of Kassa Finvest. vii. The group persons/entities of Kassa Finvest were alleged to have derived economic benefit out of the funds siphoned off by Kassa Finvest.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:SEBI/WTM/SR/EFD-DRA-II/66/09/2017. 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.