sebi:WTM/AB/IVD/ID19/15432/2021-22
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Facts / Headnote
Violations of LODR Regulations and Section 21 of SCRA, 1956 held established against QFSL and its directors/CFO for misrepresentation of financials and misuse of funds/books; monetary penalties imposed and directions under Sections 11(1), 11(4) of SEBI Act issued; PFUTP/fraudulent trade practice charges not established.
Provisions invoked
- s. 15A
- s. 19
- s. 11(1)
- s. 11B
- s. 12A
- s. 11(2)
- s. 11
- s. 15H
- s. 27
- s. 73
- s. 15J
- s. 15F
- s. 21
- s. 23E
- s. 23H
- s. 35
- s. 40A(3)
- s. 177
- s. 176
- s. 227
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)
- Reg. 4(2)(f)
- Reg. 3(b)
- Reg. 33
- Reg. 4
- Reg. 4(1)(a)
- Reg. 6
- Reg. 45
- Reg. 9
- Reg. 48
- Reg. 18(3)
- Reg. 17(8)
- Reg. 33(2)(a)
- Reg. 25(5)
- Reg. 15(2)
- Reg. 4(2)(c)
Parties
- Quest Financial Services Limited
- Mr. Prakash Kumar Jajodia
- Mr. Kishan Kumar Jajodia
- Mr. Amit Jajodia
- Mr. Rabindra Kumar Hisaria
- Bijay Kumar Agarwal
- Jyoti Lohia
Holding
QFSL misrepresented financials, misused funds/books and violated LODR Regulations and Section 21 SCRA, rendering the company liable under Sections 15HB, 15A(a) SEBI Act and 23H SCRA and its directors/CFO liable under Section 15HB, while fraudulent and unfair trade practice allegations were not made out.
Full text
Final Order in the matter of Quest Financial Services Limited. Page 1 of 62 WTM/AB/IVD/ID19/15432/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER
Final Order in the matter of Quest Financial Services Limited. Page 2 of 62 (i) Show Cause Notice No. SEBI/HO/IVD/ID19/VA/OW/P/2020/0000013228 dated August 14, 2020 issued to Noticee nos. 1 to 7 (hereinafter referred to as “SCN”); (ii) Show Cause Notice No. SEBI/HO/IVD/ID19/OW/P/2020/0000013245 dated August 14, 2020 issued to Noticee No. 8 (hereinafter referred to as “SCN- II”); and
Final Order in the matter of Quest Financial Services Limited. Page 3 of 62 with Section 27 of SEBI Act, Regulation 17(8) read with Part B of Schedule II, Regulations 33(2)(a) and Regulation 48 of LODR Regulations read with Section 21 of SCRA, 1956.
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Source: SecMarx — sebi:WTM/AB/IVD/ID19/15432/2021-22. 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.