sebi:WTM/RKA/MIRSD/13/2016
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Ex-parte ad-interim order restraining Kareena Infotech and its director Mr. Manohar Pillai from accessing the securities market, dealing in securities, undertaking any securities market activity, mobilizing funds from the public, and directing withdrawal of all advertisements/representations; order also treated as show cause notice with 21 days to file objections.
Provisions invoked
- s. 11
- s. 19
- s. 12(1)
- s. 12A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
Parties
- Kareena Infotech
- Manohar Pillai
Holding
SEBI prima facie found that Kareena Infotech and its director Mr. Manohar Pillai made fraudulent and deceitful misrepresentations about being SEBI-registered and induced investors to deal in securities, contravening sections 12(1) and 12A(a),(b),(c) of the SEBI Act, 1992 and regulations 3(b),(c),(d) and 4(1), 4(2)(k) of the PFUTP Regulations. An ex-parte ad-interim order was passed restraining them from the securities market and mobilizing funds from the public.
Full text
Order in respect of Kareena Infotech and Ors. Page 2 of 7 prospective client would be provided with undated capital PDCs (post dated cheques) with the right to cancel the agreement anytime. The entity indicates that they have several secured savings and current accounts with various banks.
Order in respect of Kareena Infotech and Ors. Page 3 of 7 6. In this regard, vide letter dated August 11, 2014 information was sought from Alpari Financial Services (India) Pvt. Ltd. [formerly known as Alpari Forex (India) Private Limited] as to whether they are associated with Kareena in any manner. In response, vide its letter dated September 03, 2014, Alpari Financial Services (India) Pvt. Ltd. submitted that it is a wholly owned subsidiary of Alpari (UK) Ltd. (a UK based company) and is a registered stock broker with SEBI. It also informed that neither Alpari Financial Services (India) Pvt. Ltd. nor Alpari (UK) Ltd. is associated with Kareena in any manner.
Order in respect of Kareena Infotech and Ors. Page 4 of 7 (5) a representation made in a reckless and careless manner whether it be true or false; (6) any such act or omission as any other law specifically declares to be fraudulent; (7) deceptive behaviour by a person depriving another of informed consent or full participation; (8) a false statement made without reasonable ground for believing it to be true; (9) the act of an issuer of securities giving out misinformation that affects the market price of the security, resulting in investors being effectively misled even though they did not rely on the statement itself or anything derived from it other than the market price. And “fraudulent” shall be construed accordingly; …………………………………………………………………………………..”
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Source: SecMarx — sebi:WTM/RKA/MIRSD/13/2016. 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.