sebi:WTM/AB/SEBI/NRO/22/2019
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Facts / Headnote
Ex-parte ad-interim restraint from accessing/dealing in securities market, cease and desist, prohibition on disposal/alienation of assets, direction for full asset inventory, no-debit directions to depositories and banks, and use of assets only for payment/delivery to clients under NSE supervision, till further directions pending forensic audit.
Provisions invoked
- s. 19
Regulations
- Reg. 9
- Reg. 3(d)
- Reg. 35
- Reg. 16
Parties
- Allied Financial Services Private Limited
- Mr. Rajeev Kumar Asopa
- Mr. Lalit Agarwal
- Mr. Rajendra Prasad Basia
- Mr. Awanish Kumar Mishra
- Mr. Jitendra Kumar Tiwari
- Money Mishra Financial Services
- Money Mishra Overseas Pvt. Ltd.
- Pankaj Garg
- Jitender Malhotra
Holding
SEBI passed an ex parte ad-interim order restraining AFSPL and nine associated noticees from the securities market, directing cease and desist, asset freeze and no-debit controls, pending completion of NSE forensic audit.
Full text
Ex-parte ad –interim order in respect of Allied Financial Services Private Limited and others Page 2 of 20 a) As a stock broker in equity derivative segment of NSE (Registration number: INZ000164832) b) As a stock broker in equity segment of NSE (Registration number: INZ000164832) c) As a Depository Participant of National Securities Depository Ltd. (NSDL) (Registration number: IN-DP-387-2018).
Ex-parte ad –interim order in respect of Allied Financial Services Private Limited and others Page 3 of 20 a) Non availability of Client funds On verification of the trail balance as on January 31, 2019 it was observed that there are client payables amounting to Rs. 138.78 crores against which funds of only Rs. 44.42 crores are available in the bank / Clearing Member / Clearing corporation and Exchange. Thus the member has shortage of Rs. 94.42 crores payable to the clients. Details are as under:
Ex-parte ad –interim order in respect of Allied Financial Services Private Limited and others Page 4 of 20 c) Non Settlement of Inactive Clients: On verification of trial balance and register of securities as on November 30, 2018, it is observed that funds and securities worth Rs. 37.48 crores, of 102 inactive clients, who have not traded in preceding 3 months, have not been settled. Amongst the said inactive clients, there are 27 clients who have never traded on the Exchange platform. The value of funds and securities of these inactive clients amounts to Rs. 4.60 crores.
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Source: SecMarx — sebi:WTM/AB/SEBI/NRO/22/2019. 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.