sebi:WTM/MB/IVD/ID3/12942/2021-22
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Facts / Headnote
Mutual Fund Digi Locker, Mr. Pankaj Garg and Mr. Jitender Malhotra restrained from accessing securities market for one year and each levied Rs. 5,00,000 penalty under Section 15HA; existing holdings frozen and PAN of MFDL referred to Income Tax Department for cancellation.
Provisions invoked
- s. 15
- s. 19
- s. 11(1)
- s. 15H
- s. 27
- s. 12
- s. 25
- s. 23
- s. 167
- s. 27(2)
- s. 68
- s. 27C
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 6
- Reg. 3(a)
- Reg. 38
Parties
- Mutual Fund Digi Locker (MFDL)
- Mr. Pankaj Garg
- Mr. Jitender Malhotra
Holding
Noticee Nos. 2 and 3 by acts of commission and omission facilitated fraudulent transfer of MF units worth Rs. 21,70,04,737 from NEPL demat account, violating Regulations 3(a) and 4(1) of PFUTP Regulations, and MFDL as firm is liable; each Noticee restrained for one year and penalized Rs. 5 lakh under Section 15HA.
Full text
Order in the matter of Allied Financial Services Pvt. Ltd. – Mutual Fund Digi Locker Page 1 of 26 WTM/MB/IVD/ID3/12942/2021-22
Order in the matter of Allied Financial Services Pvt. Ltd. – Mutual Fund Digi Locker Page 2 of 26 worth Rs. 344.07 crores by AFSPL (these complainants are hereinafter collectively referred to as the “Dalmia Group”) and
Order in the matter of Allied Financial Services Pvt. Ltd. – Mutual Fund Digi Locker Page 3 of 26 4.1. Noticees were employees of AFSPL and opened demat account for their partnership firm MFDL. 4.2. MF units worth Rs. 21.70 crores were transferred from account of NEPL by AFSPL to the demat account of Mr. Pankaj Garg and Mr. Jitender Malhotra. Subsequently, the units were transferred to the account of Money Mishra Financial Services (“MMFS”) and Mr. Awanish Kumar Mishra (“Awanish”), Director of AFSPL. The units were then transferred to IL&FS Securities Services Ltd. (“ISSL”) by AFSPL for taking exposure in the market. Details are as below:
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Source: SecMarx — sebi:WTM/MB/IVD/ID3/12942/2021-22. 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.