sebi:WTM/VKC/MIRSD/DPS-1/93/07
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Facts / Headnote
Interim directions issued against ACL: prohibition on opening new trading/DP accounts and new RTI/RTA agreements pending enquiry; NSE directed to deduct amount equivalent to current market price of undisputed shares from ACL's deposits; enquiry to be completed speedily.
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 19
- s. 11(1)
- s. 12
- s. 11a
Regulations
- Reg. 7
- Reg. 3
- Reg. 26
Parties
- Abhipra Capital Ltd.
Holding
SEBI passed an interim ex-parte order restraining Abhipra Capital Ltd. from opening new trading and DP accounts and entering into new RTI/RTA agreements pending completion of enquiry proceedings, and directed NSE to deduct from ACL's deposits an amount equivalent to the current market price of 449 ACC shares and 29 scrips not delivered to complainants.
Full text
ACL has been indulging in undesirable practices in the conduct of its business apparently in contravention of SEBI Act, Rules and Regulation. ACL has not been taking necessary steps to redress the grievance of its clients. ACL did not co-operate with SEBI in providing information and on the other hand employed delaying tactics to suppress information. Two of the instances of investor complaints received against ACL are given in detail in the following paragraphs: 1.3 SEBI has received complaints from Shri Brijesh Johari and Smt. Roma Johari (hereinafter referred to as the ‘Johari’s’ or ‘complainants’) in the year 2003-04 against ACL. The major allegations against the ACL were as under: i) Johari’s were dealing with ACL from their Gwalior branch. On December 30, 1999, Johari’s instructed ACL to sell 244 shares of ACC @ Rs. 240 per share and 205 shares @ Rs. 240 per share. Accordingly the shares were sold in the market. ACL issued two cheques for Rs. 57974.40 and 48708.00 respectively towards the sale proceeds. When Johari’s presented the cheques for payment the same were dishonoured. ii) Later, when Johari’s demanded payment of the sale proceeds (in lieu of the dishonoured cheques) ACL induced Johari’s to buy certain shares instead of making the payment. ACL suggested purchasing shares of Engineers India Ltd. (EIL), Mangalore Refinery & Petrochemicals Ltd. (MRPL) and Steel Authority of India ltd. (SAIL). ACL advised that the purchase price of these shares would be adjusted and
iii) ACL had circulated a letter dated November 27, 2000 to all their clients stating that their Gwalior branch was being converted into a franchisee with M/s. Tag Finvest Pvt. Ltd. (TFPL) with effect from December 6,
an inquiry in to the affairs of ACL with regard to Johari’s complaint in the month of March 2007. 1.5 SEBI had received another complaint dated November 19, 2005 from M/s Reena Associates (Shri Deepak Gupta), a client of ACL. Shri Deepak Gupta used to trade in Future and Options (F&O) segment of NSE. Shri Deepak Gupta alleged that ACL indulged in manipulation of huge amount in his account and has also misappropriated his funds. ACL misappropriated the credit balance as well as margin deposit account of Shri Deepak Gupta by raising fraudulent and fictitious debit entry of Rs.1,53,00,915/- on October 28,
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Source: SecMarx — sebi:WTM/VKC/MIRSD/DPS-1/93/07. 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.