Sebi has also asked the general public to report any violation by Kassa, which has been found to have diverted investors' money for funding its other business ventures.
"Kassa Finvest Private Limited had prima facie raised funds by way of illegally selling the securities of its clients/investors and provided assured returns to its clients," Sebi said today.
Besides, regulator has asked them to "cease and desist from undertaking any activity in the securities market, directly or indirectly".
"The public at large is informed that in case they come across any information regarding the violation of any of the above directions...The same may be reported to Sebi in the interest of investors and securities market," the market regulator said.
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As per information submitted by NSE with Sebi, there were 195 pending investor complaints having a claim value of about Rs 38.13 crore against the broker, as on March 11, 2015.
Finding that Kassa had misused the investor money, Sebi said that "this is a case where effective and expeditious action is required to be taken not only to prevent any further harm to investors but also to send a stern message to prevent any person from indulging in acts as observed in this case".
Earlier, NSE, which had received large number of complaints against Kassa, had initiated an inspection.
However, Kassa had failed to cooperate in the inspection despite several opportunities granted to them and accordingly the inspection could not be conducted.
The trading terminals of Kassa had been disabled in the capital market segment of NSE since November 19, 2014 due to shortfall in the minimum deposit requirement in the segment.