Sebi bans Guiness Securities, 35 others from securities market

Upon receipt of NSE report, which prima facie indicated misuse of client securities worth Rs 212.17 crores across 1,139 scrips by Guiness Securities Ltd (GSL), Sebi carried out a preliminary analysis.

From its preliminary analysis, the regulator observed that GSL through its 6 clients misappropriated total value of client securities worth "at least Rs 233.75 crores across 959 scrips".

Moreover, it failed to settle the funds of the client and failed to resolve investors complaint within stipulated time, Sebi said.

By engaging in such activities, GSL 'prima-facie' violated Sebi's Stock Broker and Sub Brokers regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, among others.

"The conduct of GSL, its directors and its associates is not in the interest of investors in the securities market, necessary action has to be taken against them immediately, else it may lead to loss of investors' trust in the securities market", the regulator noted.

Accordingly, Securities and Exchange Board Of India (Sebi) banned GSL, its present directors Dharmendra Kothari, Kamal Kumar Kothari, Tarun Kanti Sengupta and Soumen Chatterjee and former directors along with others till further directions.