sebi:WTM/GM/EFD/05/2019-20
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee prohibited from accepting any fresh clients for a period of one month from the date of this Order and directed to disclose the contents of the directions on its website immediately.
Provisions invoked
- s. 12
Regulations
- Reg. 14
- Reg. 14(1)
- Reg. 14(3)
- Reg. 14(2)(h)
- Reg. 28
- Reg. 27
- Reg. 40(7)
Parties
- Sharex Dynamic (India) Pvt. Ltd.
Holding
The Noticee violated RTI Circular 2001 and Regulation 14(3)(c) of RTA Regulations read with RRTI Circular 1994 by processing transfers despite material signature differences and without specimen signature records, and is prohibited from accepting any fresh clients for one month.
Full text
Order in the matter of Sharex Dynamic (India) Pvt. Ltd. Page 2 of 9 (i) Noticee had processed transfer of shares, despite significant mismatch between the signature of transferor and his specimen signature, rather than sending the objection memo to the transferee in the prescribed format in original marking the reason as “material signature difference”. For instance, in case of Indian Infotech and Software Ltd., the signature of transferor Charanjit Singh Chadha did not match with the specimen signature. The same has been observed in as many as in 11 instances [Transfer Deed (TD)] No. 15054, 15057, 15058, 15059, 15060, 15067, 15002, 15003, 15005, 15006 and 15007.
Order in the matter of Sharex Dynamic (India) Pvt. Ltd. Page 3 of 9 4. Submissions made before the DA are summarised as follows:
Order in the matter of Sharex Dynamic (India) Pvt. Ltd. Page 4 of 9 II. Unavailability of signature records The details of the transfers allegedly carried out in the absence of signature records are as under: TABLE 2 Sr. No. Transfer Deed Number Name of Transferor Name of Transferee 1 14979 Sherul Porwal Chanranjit Singh Chadha 2 10095 Clast Finance & Leasing P Ltd Dinesh Shetty 3 10096 Clast Finance & Leasing P Ltd Dinesh Shetty 4 1017 Dharmendra karia Acil Cotton Ind Ltd 5 1008 Hitesh Suresh Bhagat Cromakem Ltd 6 1006 Jaya Talakshi Cheda Sonal International Ltd 7 1009 Jaya Talakshi Cheda Stardom Trading Company p Ltd 8 1010 Harjit Singh Talwar Stardom Trading Company p Ltd
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Source: SecMarx — sebi:WTM/GM/EFD/05/2019-20. 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.