sebi:WTM/PS/23/MIRSD-2/JULY/2013
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Facts / Headnote
Cancellation of stock broker certificates of registration; cancellation as depository participant not required
Provisions invoked
- s. 19
Regulations
- Reg. 5(e)
- Reg. 28(2)
- Reg. 19
- Reg. 6A
- Reg. 5A
- Reg. 24
- Reg. 5
Parties
- Parsoli Corporation Limited
Holding
SEBI cancelled Parsoli Corporation Limited's certificates of registration as stock broker on NSE (INB/INF 230806837) and BSE (INB/INF 010806835) for failing the 'fit and proper person' criteria, while holding cancellation as depository participant was not required as its DP registration (IN-DP-CDSL-341-2006) had expired on March 01, 2011 without renewal.
Full text
Page 2 of 8 dated July 27, 2010. This order contained the following directions: a. Parsoli and its whole time directors namely Mr. Zafar Yunus Sareshwala and Mr. Uves Yunus Sareshwala were restrained 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. b. Mr. Zafar Yunus Sareshwala and Mr. Uves Yunus Sareshwala were also restrained from holding the position of Director in any listed company for a period of seven years. c. The whole time directors of Parsoli, Mr. Zafar Yunus Sareshwala and Mr. Uves Yunus Sareshwala were also directed to make a public offer to acquire the shares from public shareholders within three months.
Page 3 of 8 5. Subsequently, a show cause notice dated April 11, 2011 was issued to Parsoli, to show cause as to why action as recommended by the Designated Authority, should not be imposed against it. Parsoli was advised to reply to the show cause notice together with the documents that it may choose to rely upon, in support of its reply within twenty one days from the date of the receipt thereof. It was also informed that in case of failure, it would be presumed that Parsoli had no explanation to offer and the matter would be proceeded with, on the basis of the evidence available on record. Parsoli was also advised to indicate whether it desired a personal hearing in the matter. A copy of the Enquiry Report was also forwarded to Parsoli along with the said show cause notice.
Page 4 of 8 of Parsoli submitted that Parsoli has no intention of contesting the recommendations made by the Designated Authority. The same was later confirmed vide letters dated December 19, 2012 and January 07, 2013. Parsoli vide a subsequent letter dated January 07, 2013 also requested SEBI to unfreeze its beneficiary demat accounts which have been frozen since the year 2009 by CDSL. It has also requested SEBI to permit squaring off of its positions in the frozen demat accounts and to withhold the proceeds, till all legal proceedings and other procedures are completed.
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Source: SecMarx — sebi:WTM/PS/23/MIRSD-2/JULY/2013. 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.