sebi:WTM/MSS/MIRSD/79/2010
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Facts / Headnote
Application dated April 3, 2008 for grant of certificate of registration as a merchant banker rejected
Provisions invoked
- s. 19
Regulations
- Reg. 10
- Reg. 6
- Reg. 6A
- Reg. 38(3)
Parties
- Parsoli Corporate Services Ltd.
Holding
SEBI rejected the application of Parsoli Corporate Services Ltd. for registration as a merchant banker on the ground that it is not a fit and proper person, given that its promoter, holding company, Managing Director and Joint Managing Director were restrained from dealing in securities and from holding directorship positions in listed companies for seven years.
Full text
Page 2 of 3 3. PCL filed an appeal against the interim order. While disposing of the appeal, Hon’ble SAT, vide its order dated May 6, 2010, directed SEBI to conclude the pending enquiry proceedings at the earliest, but not later than July 31, 2010. Accordingly, SEBI concluded the proceedings and, vide order dated July 27, 2010, restrained PCL, and its whole time directors, namely, Mr. Zafar Sareshwala and Mr. Uves Sareshwala from buying, selling or dealing in securities market in any manner whatsoever or accessing the securities market directly or indirectly for a period of seven years. It also restrained Mr. Zafar Sareshwala and Mr. Uves Sareshwala from holding the position of Director in any listed company for a period of seven years.
Page 3 of 3 the promoter / holding company of the applicant, namely, Parsoli Corporation Ltd., and Managing Director, namely, Mr. Zafar Sareshwala and Joint Managing Director, Mr. Uves Sareshwala, I consider the applicant not a fit and proper person to be a merchant banker and grant of certificate of registration to the applicant is not in the interest of investors.
4. In view of the above order restraining the promoter and the holding company, and Managing Director and Joint Managing Director of the applicant, SEBI formed a prima-facie view that the applicant is not a fit and proper person to act as a Merchant Banker under regulation 6A of the Regulations, read with regulation 38(3) and Schedule II of the SEBI (Intermediaries) Regulations, 2008. A notice dated August 5, 2010 was issued asking the applicant to explain as to why its application for registration as a Merchant Banker dated April 3, 2008 should not be rejected in accordance with regulation 10 of the Regulations. No reply to the notice was received from the applicant. An opportunity of personal hearing was granted before me on October 6,
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Source: SecMarx — sebi:WTM/MSS/MIRSD/79/2010. 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.