sebi:WTM/RKA/NRO/42/2014

SEBI · SEBI · 2013-03-31 · Rajeev Kumar Agarwal, Whole Time Member

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Facts / Headnote

Ex-parte interim order restraining Unickon Securities Pvt. Ltd. and its directors from accessing the securities market and directing them to cease and desist from the noted activities, pending further directions.

Provisions invoked

• s. 19
• s. 12

Regulations

• Reg. 7
• Reg. 6
• Reg. 21
• Reg. 9(e)

Parties

• Unickon Securities Pvt. Ltd.
• Mr. Gajendra Nagpal
• Mr. Ram Mohan Gupta

Holding

Unickon Securities Pvt. Ltd. prima facie contravened regulation 9(e), regulation 21 of the Stock Brokers Regulations, and clauses A(3) and A(5) of the Code of Conduct, and is restrained from accessing the securities market with immediate effect, along with its directors Mr. Gajendra Nagpal and Mr. Ram Mohan Gupta.

Full text

In the matter of Unickon Securities Pvt. Ltd. Page 2 of 8 Shareholding Pattern of Unicon Financial Intermediaries Pvt. Ltd. as on March 31, 2013 6 Sequoia Capital India Growth Investment 4000 0.02 7 Ms. Vandana Manchanda 545600 2.15 8 Subhkam Ventures India Ltd. 7049000 27.77 9 Nexus India Ventures Investments 2000 0.01 10 Mr. Girish R Doshi 460000 1.81 11 Mr. Sanjay R Doshi 467600 1.84 12 Others 1364400 5.38

In the matter of Unickon Securities Pvt. Ltd. Page 3 of 8 (h). Trial Balance as on March 19, 2014. (i). Status of unresolved complaints against Unickon Securities as on March 19, 2014. (j). Policy on Delayed Payment Charges. (k). Details of Client’s Securities pledged by Unickon Securities as on March 20, 2014. (l). Details of demat accounts in which securities of the clients are being pledged. (m). Details of bank accounts in which funds are being raised against the pledged securities of the clients. (n). Details of the following contingent liabilities as mentioned in its Annual Report 2012-13: (i) Other claims against the company not acknowledged as Debts - `51,750,000/- (previous year - `51,750,000/-) (ii) Bank guarantees given amounting to `181,000,000/- (previous year - `181,000,000/-) for loans taken by other companies.

In the matter of Unickon Securities Pvt. Ltd. Page 4 of 8 7. As advised by SEBI, NSE and BSE also conducted inspection of Unickon Securities. Pursuant to the inspection, these stock exchanges have, inter alia, informed that: (a). Unickon Securities did not cooperate with the stock exchanges during the inspection; (b). Unickon Securities did not furnish several documents/information despite repeated reminders by the stock exchanges. (c). Unickon Securities has not submitted internal audit report for the half year ending September 2013 onwards to NSE and BSE. (d). Unickon Securities did not submit the net worth certificate for the half year ending on September 2014 thereby making it difficult on the part of these stock exchanges to ascertain the net worth eligibility criterion of the stock broker. (e). In view of the non-cooperation of Unickon Securities and pending investor complaints against it, NSE has disabled the stock broking terminals of Unickon Securities in the Capital Market Segment since February 28, 2014 and in the Futures & Options Segment since March 24, 2014. (f). Similarly, BSE has disabled the stock broking terminals of Unickon Securities since April 16, 2014. (g). The details of the pending investor complaints against Unickon Securities on NSE and BSE as on May 04, 2014 are as below:

Source: SecMarx — sebi:WTM/RKA/NRO/42/2014. 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.