Sebi slaps Rs 4.65 cr positive on Kassa Finvest, 7 people for misusing purchasers’ securities

Regulator Sebi on Wednesday imposed a complete positive of Rs 4.65 crore on Kassa Finvest Pvt Ltd and 7 people for misusing purchasers’ securities, amongst different violations.
It was discovered that Kassa Finvest indulged in actions apart from stockbroking enterprise, reminiscent of offering assured returns to its purchasers and traders, as per a Sebi order.
Further, the watchdog famous that the broking agency had executed trades on behalf of the purchasers with a situation that the margin cash can be utilized for buying and selling in any section/ trade. Subsequent funds made to purchasers in direction of assured return establishes that Kassa Finvest had by no means disclosed to purchasers the transactions entered on their behalf, it added.
These actions of the agency had been within the nature of a ‘Portfolio Manager’ and by appearing as such with out acquiring acceptable registration, it has acted in violation of Portfolio Managers Regulations, Sebi stated.
The regulator additionally famous that funds to the tune of Rs 46.82 crores have been transferred from consumer financial institution accounts to the enterprise financial institution accounts of the agency from 2008 onwards.
By such conduct and actions, Kassa Finvest had failed in segregating its personal funds and purchasers’ securities, misutilised purchasers’ cash and likewise misappropriated the purchasers’ securities, Sebi stated.
The agency indulged in offering funds to the tune of roughly Rs 26.45 crore to its group or associated entities whereby two of the people had been main beneficiaries, it added.
Stock Broker Regulations require brokers to take enough steps for redressal of investor grievances inside a interval of 1 month from the date of receipt of grievance.
However, it was famous that as on April 15, 2015, 421 complaints had been pending towards Kassa Finvest as towards 255 pending complaints towards it as per SCORES as on March 11, 2015.
An particular person Ashok Kumar on behalf of Kassa Finvest had didn’t furnish full info/ particulars pertaining to monetary ledgers, demat accounts/statements, particulars of financial institution accounts/ statements, as sought from him via summons dated March 3, 5 and 16, 2015.
Also, the regulator in an order handed in September 2017, debarred the agency and a few people from accessing the securities marketplace for a interval of 10 years and a few of them have additionally been directed to make refunds to the traders.
The people had been the senior officers of the agency in the course of the related interval and are chargeable for the acts and omissions dedicated by Kassa Finvest, the order famous.
Accordingly, Rs 4.5 crore penalty has been imposed on Kassa Finvest, Ashok Kumar, Umashankar Sharan Srivastava, Anjana Kumar, Siddharth Shankar, NItika Shankar, payable collectively and severally.
Besides, Rs 7.5 lakh positive every has been levied on Anil Kumar Dhawan and Manoj Kumar Agarwal.
In a separate order handed on Wednesday, Sebi imposed a positive of Rs 5 lakh every on Jesse Trading Pvt Ltd and Nikita Enterprise Pvt Ltd for his or her failure to furnish the data sought by the regulator via summons within the matter of Supreme Tex Mart Ltd.