News

October 14, 2019

Securities & Exchange Board Of India Bans Directors, Former Directors Of Fairwealth Securities From Capital Markets


[ By Bobby Anthony ]

SEBI

Securities & Exchange Board of India (SEBI) has ruled that the directors and former directors of stock broker Fairwealth Securities Ltd, along with six other entities, have been restrained from the securities market for violation of securities laws.

Accordingly, Dhirender Gaba, Naveen Gaba, Shripad Sadanand Desai, Sandeep Jindal, Shitla Prasad Shukla, Roop Lal Aggarwal and Kamla Prasad Shukla, will not be allowed to access capital markets.

The SEBI order was passed based on a preliminary report filed by the National Stock Exchange (NSE) which informed the regulator about irregularities observed by it.

“Based on the report by NSE, it is observed that FSL has prima facie failed to comply with the Securities and Exchange Board of India Act, 1992," the SEBI order stated.

“It is observed that Fairwealth Securities Ltd has prima facie misused funds and securities of clients with assistance or connivance with other noticees," the SEBI order added.

Earlier, the NSE had informed the SEBI that after it paid a visit to the office of the company, it found that directors of the company are absconding.

On analysis of register of securities of Fairwealth Securities, NSE found that out of total client securities worth over Rs 103 crore, securities amounting to Rs 88 crore were not available with the trading member.

Further, the broker appeared to have sold securities worth over Rs 82 crore through accounts of five clients without these clients owning the securities.

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