Sebi bans Kamal Kumar Kothari's Guiness Securities, 35 others from securities market

On Wednesday Market regulator SEBI restricted Kolkata-based stock representative Kamal Kumar Kothari's Guiness Securities Ltd (GSL) and 35 others entities from securities market till further directions for a situation connected with non-settlement of client assets and misappropriation of protections. These 35 elements additionally incorporate GSL's present and previous chiefs.

Besides, the regulator directed the entities to file their reply within 21 days, failing to do so would confirm the directions issued against the entities automatically, "without any further orders", Sebi said in an interim ruling.

Endless supply of NSE report, which at first sight showed abuse of client protections worth Rs 212.17 crores across 1,139 scrips by Guiness Securities Ltd (GSL), Sebi completed a primer examination.

From its primer investigation, the controller saw that GSL through its 6 clients abused absolute worth of client protections worth "essentially Rs 233.75 crores across 959 scrips".

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) restricted Guiness Securities Ltd (GSL); its current chiefs Dharmendra Kothari, Kamal Kumar Kothari, Tarun Kanti Sengupta and Soumen Chatterjee and previous chiefs alongside others till additional headings. VHP MKJ