sebi:WTM/KMA/IVD/416/07/2011
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Facts / Headnote
Interim ex-parte directions issued vide the Order dated December 02, 2010 against Sanchay Fincom Limited and Sanchay Finvest Limited are confirmed to continue pending completion of investigation.
Provisions invoked
- s. 19
Parties
- Sanchay Fincom Limited
- Sanchay Finvest Limited
Holding
The interim ex-parte directions against Sanchay Fincom Limited and Sanchay Finvest Limited, issued vide the Order dated December 02, 2010, are confirmed to continue until the investigation is concluded. The stock brokers' contention that their client-beneficiary demat accounts should not have been frozen is rejected.
Full text
Page 2 of 16 against them need to be continued, modified or revoked in the light of their submissions and the facts and circumstances of the matter.
Page 3 of 16 Sanchay Fincom Limited a. Para 37 (Page23) alleging that certain Dangi Group entities traded through the stock stock broker and Mr. Sanjay Dangi & Mrs. Alpna Dangi belong to the promoter group of Sanchay Fincom Limited. b. Para 51 (Page 38) stating the past actions taken against Sanchay Fincom Limited. c. Para 53(f) (Page 41) directing Sanchay Fincom Limited not to buy, sell or deal in the securities in their own/proprietary account in any manner till further directions in this regard and not to take/deal with fresh/new clients with immediate effect until further orders d. Page 55 listing the role and action taken against Sanchay Fincom Limited in various other matters in SEBI.
Page 4 of 16 6. Sanchay Fincom Limited has submitted that it is registered with SEBI since October 20, 2000 as a BSE stock broker and it transacts only in cash segment of the securities market. Over the years, SEBI/BSE has conducted inspection of their systems and operations and the same were found satisfactory except for stray technical violations. More than 85% of its capital belongs to promoter Sharma family comprising of Mr. Suresh Sharma, Mr. Naresh Sharma, Mr. Narottam Sharma alongwith their relatives and group entities whereas Mr. Sanjay Dangi and Mrs. Alpana Dangi holds 10% & 5% respectively. Mr. Sanjay Dangi is also continuing as director of Sanchay Fincom Limited. Though Mr. Sanjay Dangi was its promoter director, he never attended any board meeting and had no role in the affairs of Sanchay Fincom Limited. Similarly, Mr. Sanjay Dangi and Mrs. Alpana Dangi have not attended any shareholders meeting. Regarding the location of office in the premises of Pacific Corporate Services Limited (now known as Mentor Capital Limited), it is stated that the same is operational since September 2002 and was set up there with the permission of its director, Mr. Sanjay Dangi. Out of the alleged Dangi entities, only two entities i.e. Ashok Finstock Limited (hereinafter referred to as AFL) and Mrs. Alpana Dangi are its clients. AFL is registered with Sanchay Fincom Limited as a client since October 2004 and mainly used to do jobbing transactions. AFL was having good financial track rec
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Source: SecMarx — sebi:WTM/KMA/IVD/416/07/2011. 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.