sebi:WTM/MSS/MIRSD/DPS-I/160/09
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Facts / Headnote
Ad interim ex-parte directions issued restraining trading, freezing funds/securities, securing assets, and treating the order as a show cause notice
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 17
- Reg. 21(1)
- Reg. 6A
- Reg. 35
Parties
- Sunchan Securities Limited
- Mr. Sunil Mansinghani
- Mrs. Kanchan Mansinghani
- Mr. Ajay Janardan Kotwal
- Mr. Riyaz Ismail Shaikh
Holding
The Whole Time Member issued ad interim ex-parte directions restraining Sunchan Securities Limited (SSL), its directors, and compliance officer from buying, selling or dealing in securities, freezing their funds and securities at exchanges and depositories, and securing their assets, pending inquiry. The order was also treated as a show cause notice requiring the entities to explain within 15 days why the directions should not be continued and why further directions including debarment should not be issued.
Full text
Page 2 of 11 SEBI has forwarded these complaints to NSE and BSE for taking up the matter with SSL for redressal. 1.3 SEBI, vide letter dated January 22, 2009, addressed to NSE and BSE and telephonic communications with them prior to that, advised them to carry out a special purpose inspection of SSL and submit a factual report at the earliest. SEBI also advised them to take necessary prompt actions in the matter to redress the complaints of the investors and to consider initiation of appropriate remedial measures in view of possibility of the default by SSL. Vide another letter, NSE and BSE were advised to take appropriate action to safeguard the interests of investors.
Page 3 of 11 ¾ SSL failed to deliver securities worth Rs. 5.80 crore due to its clients. The same are not available in the demat accounts of SSL. ¾ SSL, vide letter dated January 7, 2009, has stated that it had understanding with the clients that whenever clients did not want trades to be initiated in their trading accounts, trades would be executed on their behalf in its pro-account and that the profits would be shared between SSL and the clients in the agreed ratio.
Page 4 of 11 2.4 Use of more than one client code SSL used more than one client code for own trading and trading by its directors. Details of said multiple client codes are given as under: Name of the Client Segment Client Codes Used Sunchan Securities Ltd. NSE F&O BNS001, BNS151, BNS102, BNS155, BNS164, BNS165 Ms. Kanchan Mansinghani NSE F&O BNK001, BNK029 Mr. Sunil Mansinghani NSE F&O BNS117, BNS053
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Source: SecMarx — sebi:WTM/MSS/MIRSD/DPS-I/160/09. 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.