Sebi bars 2 brokers, 7 persons for clients' funds misuse

Sebi today banned two brokers Ficus Securities and Ficus Commodities along with seven individuals for alleged misuse of client funds.

Ficus Securities Pvt Ltd (FSPL) is a stock broker, while Ficus Commodities Pvt Ltd (FCPL) is a commodity derivatives broker.

In August last year, the National Stock Exchange had forwarded the inspection report of FSPL to the markets regulator, which had several adverse observations, including improper use of clients funds and securities.

Concluding that the conduct of FSPL, FCPL and their directors is not in the interest of investors in the securities market, Sebi has barred the nine entities till further directions.

Besides FSPL and FCPL, seven individuals -- Vinod Kumar Bansal, Surender Singh, Neena Bansal, Prashant Kumar Nayak, Poonam Rajbhar, Tripta Kapoor and Shabnam John -- have been restrained from the securities market.

 

They have also been prohibited from buying, selling or otherwise dealing in securities, either directly or indirectly, or being associated with the securities market in any manner whatsoever, till further directions, Securities and Exchange Board of India (SEBI) said in an order.

"Pending detailed inquiry, in view of the liabilities of FSPL and FCPL and transfer of clients' funds and securities from FSPL to FCPL it is also essential to take urgent steps to prevent FSPL, FCPL and its present/ past directors not to alienate any assets... so that the final remedies, if any, do not become infructuous," it noted.

As per the order, FCPL has made an application to MCX and NCDEX for surrender of its certificate as a commodities broker.

According to the regulator, necessary action has to be taken against them immediately, else it may lead to loss of investors' trust in the securities market.

"I am also convinced 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 prevent the ongoing violations," Sebi Whole Time Member Madhabi Puri Buch said in the order.