sebi:WTM/AB/SEBI/ERO/08/2018
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Facts / Headnote
Ex parte ad-interim order restraining Noticees from accessing the securities market, prohibiting dealing in securities, directing asset freeze (except client payments), directing inventory disclosure, and directing banks/depositories to restrict debits; objections due within 21 days with personal hearing scheduled for February 05, 2019.
Provisions invoked
- s. 19
Regulations
- Reg. 9
- Reg. 21(1)
- Reg. 3(d)
- Reg. 35
- Reg. 16
- Reg. 9(c)
Holding
SEBI prima facie found that Guiness Securities Limited (GSL) misappropriated client securities worth Rs. 233.75 crores through six front entities, falsified books, failed to maintain net worth, and failed to settle client funds/securities, and accordingly restrained GSL, its directors, and associated entities from accessing the securities market pending further proceedings.
Full text
Ex-parte ad –interim order in respect of Guiness Securities Limited and others Page 2 of 33 30 Mr. Sudarshana Mitra AHBPM6874G 31 Mr. Shyamal Mitra AHBPM6875H 32 Mr. Abhijit Pal NA 33 Mr. Gaurav Choudhary AFSPC6498P 34 Superfast Tours And Travels Pvt. Ltd. AAECS4607A 35 Mr. Mahabir Chand Jain ACHPJ8058N 36 Mr. Jayant Kumar Jain AGUPJ4377R
Ex-parte ad –interim order in respect of Guiness Securities Limited and others Page 3 of 33 2. Guiness Commodities Pvt. Ltd. is registered with SEBI as a commodity derivatives broker of Multi Commodity Exchange of India Ltd. (MCX) (Registration number INZ000051534). Guiness Corporate Advisors Pvt. Ltd. is registered with SEBI as a Merchant Banker (Registration Number INM000011930). Guiness Portfolio Management Services Private Limited is registered with SEBI as a Portfolio Manager (Registration Number INP000004557).
Ex-parte ad –interim order in respect of Guiness Securities Limited and others Page 4 of 33 4. The list of shareholders and shareholding pattern, as on July 25, 2018, as reported by GSL is as follows: Name No. of Shares % of Shareholding Mr. Kamal Kumar Kothari 23,56,920 28.92 J S Enclaves Pvt. Ltd. 14,00,000 17.18 Guiness Finance & Leasing Pvt. Ltd. 12,00,000 14.72 Ms. Sunita Kothari 8,25,210 10.12 Mr. Ichraj Devi Kothari 4,48,000 5.5 Guiness Corporate Advisors Pvt. Ltd. 4,27,500 5.24 Mr. Dharmendra Kothari 4,10,210 5.03 Guiness Commodities Pvt. Ltd. 4,10,000 5.03 Ms. Lalita Devi Kothari 1,55,600 1.91 Dharmendra Kothari & Sons (HUF) 1,40,000 1.72 Mr. Rajesh Kumar Kothari 1,10,000 1.35 Ms. Trishla Devi Kothari 1,00,000 1.23 Guiness Portfolio Mgmt. Services Pvt. Ltd. 62,000 0.76 Mr. Abhijeet Kothari 40,000 0.49 Mr. Hemant Kothari 25,000 0.31 Kamal Kumar Kothari & Sons HUF 17,400 0.31 H.K.Kothari & Sons HUF 18,000 0.22 Mr. Anand Jyoti Kothari 5,000 0.06 TOTAL 8,15,0840 100
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Source: SecMarx — sebi:WTM/AB/SEBI/ERO/08/2018. 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.