sebi:WTM/MPB/IVD/ID1/194/2021
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Facts / Headnote
Violations established against all four Noticees; monetary penalties imposed and market access restrictions/director association bans imposed on individual Noticees; directions for return of MF Units not issued in these proceedings.
Provisions invoked
- s. 19
- s. 11(1)
- s. 15H
- s. 12
- s. 27(1)
- s. 19(1)
- s. 19G
- s. 179
- s. 467
Regulations
- Reg. 36
- Reg. 3
- Reg. 199
- Reg. 29
- Reg. 3(a)
- Reg. 20
- Reg. 20A
- Reg. 37
- Reg. 201
- Reg. 86(1)
- Reg. 81(1)
- Reg. 98(2)
- Reg. 139
Parties
- Allied Financial Services Pvt. Ltd. (AFSPL) - Noticee No. 1
- Mr. Awanish Kumar Mishra - Noticee No. 2
- Mr. Himanshu Arora - Noticee No. 3
- Mr. Jitendra Kumar Tiwari - Noticee No. 4
Holding
SEBI held AFSPL and its directors liable for fraudulent and unauthorized transfer of MF units from client demat accounts (DCEL, OCL, NEPL), falsification of records, and violations of DP Regulations and SEBI circulars. Awanish Kumar Mishra was found directly involved, while Himanshu Arora and Jitendra Tiwari were held responsible for neglect of duties as directors/compliance officer.
Full text
Order in the matter of Allied Financial Services Pvt. Ltd. Page 1 of 84 WTM/MPB/IVD/ID1/194/2021 SECURITIES AND EXCHANGE BOARD OF INDIA
Order in the matter of Allied Financial Services Pvt. Ltd. Page 2 of 84 1.1. Complaint dated February 08, 2019, from Finsec Law Advisor on behalf of clients Dalmia Cement East Limited (hereinafter referred to as “DCEL”) and OCL India Limited (hereinafter referred to as “OCL”) alleging fraudulent transfer of MF Units 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. Page 3 of 84 transferred from their accounts by using Delivery Instruction Slips (DIS). DCEL, OCL and NEPL have claimed that neither have they signed any DIS nor have they authorized these transfers. NEPL has claimed that it was told by AFSPL that high value securities are moved to Digi Locker automatically by NSDL.
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Source: SecMarx — sebi:WTM/MPB/IVD/ID1/194/2021. 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.