Sebi bans Kassa Fininvest, 16 other entities for ten years
Sebi has imposed a ten-year ban on stock broker Kassa Finvest as well as 16 other entities, including its promoters, for illegally raising crores of rupees from investors and other violations.
After a detailed investigation, it was also found that the broker had "fraudulently siphoning of clients' funds and securities by way of diverting money to other accounts.
Pending investigation, the watchdog had barred Kassa Finvest from the securities market in March 2015. The same year, both BSE and NSE had declared Kassa Finvest as a defaulter.
In a 45-page order, Sebi said it was evident that Kassa Finvest was carrying out a business other than stock broking and was providing assured returns to clients/ investors on their investments.
The Securities and Exchange Board of India (Sebi) has barred 17 entities, including Kassa Finvest and its promoters, from the market for ten years.
Besides, all the entities have been directed not to dispose off or alienate any assets.
Others who have been slapped with the ten-year ban include promoters Ashok Kumar and Anjana Kumar, director Umashankar Sharan Shrivastav and former director Siddharth Shankar.
Nitika Shankar, Manoj Kumar Agrawal, Kassa Holdings & Consultants Pvt Ltd, Kassa Financial Advisors Pvt Ltd, Mystic Cures Pvt Ltd, Guru Trading, GVC Capital, AARB Capital, G&G Impex, Durgamaya Advisors Pvt Ltd, Primavalue Capital Advisors Pvt Ltd and Anil Kumar Dhawan have also been barred.
Sebi has also asked 15 entities to refund investors'/ clients' money along with an annual interest of 15 per cent from the date when the repayment became due till the date of actual payment.
"The fraudulent, dishonest and manipulative method adopted by Kassa Finvest, a Sebi registered intermediary along with its directors, promoter, employees and group persons/ entities, flouting the provisions of Sebi Act/ Rules/ Regulations... by fraudulently siphoning of clients' funds and securities etc. can pose real threat to the integrity of our securities market," Sebi said.
In his order, Sebi Whole Time Member S Raman said if such activities are allowed to continue, they would jeopardise and tarnish the image of the securities market as a transparent and efficient way of raising capital.