sebi:WTM/RKA/MIRSD/46/2013
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 interim directions restraining MBS and Mr. Syed Sadaq from accessing the securities market, requiring withdrawal of all representations, prohibiting fund mobilization, and directing funds to be kept in an escrow account; noticees given 21 days to file objections and seek personal hearing.
Provisions invoked
- s. 19
- s. 12(1)
- s. 12A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 11(1)
Parties
- MCX Biz Solutions (MBS)
- Mr. Syed Sadaq
Holding
The Whole Time Member prima facie found that MBS and its sole proprietor Mr. Syed Sadaq displayed a fake and forged SEBI sub-broker registration certificate and made fraudulent misrepresentations, and issued ex-parte interim directions restraining them from the securities market, prohibiting fund mobilization, and requiring investor funds to be placed in an escrow account.
Full text
2 4. From the data and records available with SEBI it was observed that:- (a) MBS is not registered with SEBI as represented by it in the certificate with registration number ‘INS838639255’ as displayed on its website.
3 9. MBS has displayed one of its addresses in Malaysia but during the inquiry the same was found to be "non-existent". On further inquiry, it was observed that MBS was operating from Hyderabad. It had circulated brochure which inter alia listed out the following schemes along with the returns offered by MBS:
4 the certificate is represented to have been issued by SEBI; and (c) SEBI has never granted any certificate of registration to any entity by the name of Bonanza Promotional Limited to act as a stock broker as represented in the said certificate. In view of these facts as observed in the preliminary inquiry, I, prima facie, find that MBS has displayed a fake and forged certificate of registration claiming itself to be registered with SEBI as a sub-broker. MBS and its sole proprietor Mr. Syed Sadaq have also made known misrepresentations by making fraudulent and deceitful claims regarding registration with SEBI. They have also made representations and statements in their website about their activities in securities market in reckless and careless manner and have suggested facts which are false and untrue. By their acts and omissions including their false statements and representations in deceitful manner, they have fraudulently solicited, enticed and induced investors to deal in securities.
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Source: SecMarx — sebi:WTM/RKA/MIRSD/46/2013. 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.