sebi:WTM/RKA/NRO/133/2015
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Financial assets of MIL and its directors impounded; restrained from accessing securities market; assets to be used only for refund of money/delivery of securities to clients under stock exchange supervision; order also issued as show cause notice with 21 days to object.
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 6
- Reg. 9(e)
Parties
- Moongipa Investments Limited
- Mr. Madhur Agarwal
- Mr. Sudhir Agarwal
- Mr. Subhash Chander Singal
- Mr. Shiv Kumar Agarwal
Holding
SEBI, by ex parte ad-interim order, prima facie found that Moongipa Investments Limited (MIL) and its directors contravened SEBI circulars, conditions of registration under regulation 9(e) of the Stock Brokers Regulations, and rule 8(3)(f) of the SCRR, and impounded their financial assets and restrained them from accessing the securities market pending further directions.
Full text
In the matter of Moongipa Investments Limited Page 2 of 7 6 Sudhir Agarwal (HUF) HUF 106000 10 10.60 7.07 7 Madhur Agarwal (HUF) HUF 94000 10 9.40 6.27 8 Shalu Agarwal Wife of Sudhir 130000 10 13.00 8.67 9 Tripta Agarwal Wife of Madhur 103000 10 10.30 6.87 10 Palak Agarwal Daughter of Sudhir 49000 10 4.90 3.26 11 Moongipa Infosystem Ltd. Group Company 80000 10 8.00 5.33 Total 1500000
In the matter of Moongipa Investments Limited Page 3 of 7 of the directions of IGRP/IGRC orders, SEBI carried out inspection of MIL with a focus on “Monthly/Quarterly running account settlement”. During the course of inspection, it was, inter alia, observed that: (a) MIL had shifted its office from Plot No. 6, 2nd Floor, B.N. Block Local Shopping Centre, Shalimar Bagh, New Delhi – 110088 without leaving any notice regarding the change of its office address. (b) as admitted by Mr. Madhur Agarwal, MIL had sold some clients’ securities for meeting its own pay-in/margin obligation. (c) MIL had obtained unsecured loans from 53 entities amounting to `6.83 crore. Out of the said 53 entities, who had provided secured loans to MIL, 8 entities had also taken Unique Client Code (UCC) from it. MIL also admitted that interest was being paid in the range of 9% to 18% in 13 out of 53 loan accounts, after deducting TDS on interest payments. (d) as submitted by MIL, its asset and liabilities as on August 3, 2015 are as under:
In the matter of Moongipa Investments Limited Page 4 of 7 (b) MIL has failed to refund to its clients funds and securities due to them despite
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Source: SecMarx — sebi:WTM/RKA/NRO/133/2015. 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.