sebi:WTM/SM/IVD/ID7/6091/2019-20
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Facts / Headnote
Representation disposed of; request for segregated final order / lifting of debarment declined, request to sell pledged client shares on default without prior Stock Exchange approval granted subject to conditions
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 11(1)
- s. 12A
Regulations
- Reg. 4(1)
- Reg. 3(a)
Parties
- Inventure Finance Pvt. Ltd.
Holding
SEBI declined to pass a separate final order or lift the interim debarment for Inventure Finance Pvt. Ltd., but granted further interim relaxation permitting it to directly sell pledged client shares on loan/margin default without prior Stock Exchange approval subject to verification and reporting conditions.
Full text
Order in the matter of Kelvin Fincap Limited - In respect of Inventure Finance Pvt. Ltd. Page 2 of 11 lines of its representation. The averments made by the applicant in its representation are summarised herein below: (a) Inventure is a Non-Banking Finance Company (hereinafter referred to as “NBFC”) registered with RBI catering its services in various products, viz., loan against shares, margin trading funding in stock market, loan against property/gold, equipment finance, personal financial services, SME business loans, unsecured loans, etc. (b) Inventure is basically dependent on its parent company Inventure Growth and Securities Limited (IGSL) – a SEBI registered stock broker and a depository participant whose clientele base of approx. 47000 was the main source for Inventure to increase its clientele base and in turn, to get ready clients who would avail facility of loan against shares and margin trading funding. (c) Pursuant to the interim order of August 2014, Inventure is unable to do its business of loan against shares and margin trading funding. (d) As on March 31, 2015, after the interim order was passed by SEBI, its business as NBFC has reduced drastically. In subsequent years, there is no addition of new clients nor funding to the clients of IGSL. Majority of its clients became NPA. (e) Inventure had made certain requests to SEBI vide its letter dated January 13, 2016 and email dated May 06, 2016. One of the requests of Inventure was to allow it to directly sell cl
Order in the matter of Kelvin Fincap Limited - In respect of Inventure Finance Pvt. Ltd. Page 3 of 11 is still debarred from the market which has adversely affected its business and stakeholders. (j) It has requested to review the decision and lift the debarment, as Inventure is deprived from taking the benefits of the market opportunities and is suffering since long.
Order in the matter of Kelvin Fincap Limited - In respect of Inventure Finance Pvt. Ltd. Page 4 of 11 applicant herein from accessing the securities market and had further prohibited them from buying, selling or dealing in the securities markets, either directly or indirectly, in any manner whatsoever, till further directions. (g) Subsequently, in compliance with the principles of natural justice, personal hearing was granted to the entities restrained by the aforesaid interim order. The applicant herein had requested for an opportunity of urgent hearing which was granted to it on September 24,
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Source: SecMarx — sebi:WTM/SM/IVD/ID7/6091/2019-20. 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.