sebi:WTM/GM/NRO/25/2021-22
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Facts / Headnote
Ex-parte ad-interim order dated August 22, 2017 restrained noticees from accessing/dealing in securities market, directed cease and desist, asset inventory, no disposal/alienation, and restricted demat/bank debits except for payments to clients under exchange supervision; investigation findings recorded that misuse of client securities/funds violations stand established
Provisions invoked
- s. 19
- s. 12A
- s. 12
- s. 11(2)
Regulations
- Reg. 3
- Reg. 9(f)
- Reg. 4(2)
- Reg. 3(a)
- Reg. 9
- Reg. 9(e)
- Reg. 9(b)
Parties
- Amrapali Aadya Trading & Investment Pvt. Ltd.
- Aadya Commodities Pvt. Ltd.
- Mr. Sanjeeva Kumar Sinha
- Mr. Pawan Mishra
- Ms. Amita Sinha
- Ms. Vandana Sinha
- Mr. Sujeet Kumar Sona
- Mr. Abnish Kumar Sudhanshu
- Mr. Narayan Jee Thakur
Holding
SEBI by interim order restrained AATIPL, ACPL and seven directors from the securities market and froze asset/demat/bank debits except for client payouts, and on investigation held that failure to comply with summons, sale of client securities through employee accounts, pledging of client securities, and diversion/shortfall of client funds are established.
Full text
Order in the matter of Amrapali Aadya Trading & Investments Pvt. Ltd. & Ors Page 1 of 76 WTM/GM/NRO/25/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA
Order in the matter of Amrapali Aadya Trading & Investments Pvt. Ltd. & Ors Page 2 of 76 ‘Amrapali’ or 'AATIPL'), for the period from April 01, 2016 to March 31, 2017, which revealed serious prima-facie violations of various provisions of SEBI Act, 1992 / Rules / Regulations / Circulars. AATIPL is registered with SEBI as a stock broker (having membership of NSE, BSE and MSEI), as a Depository Participant of CDSL and as a Portfolio Manager. Pursuant to receiving the said inspection report, SEBI issued an ex-parte ad-interim order dated August 22, 2017 (hereinafter referred to as the ‘Interim Order’) against AATIPL, Aadya Commodities Pvt. Ltd (hereinafter referred to as ‘Aadya’ or 'ACPL') (a sister concern of AATIPL, registered as a Commodity Derivatives Brokers having membership of MCX) and their directors (present and past) namely, Mr. Sanjeeva Kumar Sinha, Mr. Pawan Mishra, Ms. Amita Sinha, Ms. Vandana Sinha, Mr. Sujeet Kumar Sona, Mr. Abnish Kumar Sudhanshu and Mr. Narayan Jee Thakur (hereinafter collectively referred to as “Noticees”), containing inter alia the following directions. (i) Amrapali Aadya Trading & Investment Pvt. Ltd, Aadya Commodities Pvt. Ltd., Mr. Sanjeeva Kumar Sinha, Mr. Pawan Mishra, Ms. Amita Sinha, Ms. Vandana Sinha, Mr. Sujeet Kumar Sona, Mr. Abnish Kumar Sudhanshu and Mr. Narayan Jee Thakur are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, either directly or indire
Order in the matter of Amrapali Aadya Trading & Investments Pvt. Ltd. & Ors Page 3 of 76 (ii) The aforesaid entities and persons shall cease and desist from undertaking any activity in the securities market, directly or indirectly, in any manner whatsoever till further directions; (iii) The aforesaid entities and persons are directed to provide a full inventory of all their assets whether movable or immovable, or any interest or investment or charge in any of such assets, including details of all their bank accounts, demat accounts and mutual fund investments immediately but not later than 5 working days from the date of receipt of these directions. (iv) The aforesaid entities and persons are directed not to dispose off or alienate any assets, whether movable or immovable, or any interest or investment or charge in any of such assets excluding money lying in bank accounts except with the prior permission of SEBI. (v) Till further directions in this respect, the assets of these entities shall be utilized only for the purposes of payment of money and/or delivery of securities, as the case may be, to the clients/investors under the supervision of the concerned stock exchange(s). (vi) The depositories are directed to ensure that no debits are made in the demat accounts, held jointly or severally, of the aforesaid entities and persons except for the purpose mentioned in para 56(v) after confirmation from the concerned stock exchange in this regard. (vii) The banks are directed to
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Source: SecMarx — sebi:WTM/GM/NRO/25/2021-22. 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.