SEBI bars Unickon Securities, directors from markets
Moneylife Digital Team 28 May 2014
SEBI said funds raised by Unickon (Unicon) Securities by pledging the securities of its clients/ investors illegally were purportedly diverted to its other businesses
 
Market regulator Securities and Exchange Board of India (SEBI) has barred Noida-based Unickon Securities Pvt Ltd (formerly known as Unicon Securities) and its directors from markets for violating various stock broker norms.
 
In an interim order, SEBI said it restrained Unickon Securities and its directors Gajendra Nagpal and Ram Mohan Gupta from accessing the securities “either directly or indirectly or being associated with the securities market in any manner whatsoever, with immediate effect, till further direction.”
 
Last month, Moneylife raised the issue of the broker's non-functioning trading platform. The broker was neither honouring payout requests from its investor customers not its customer services and offices were reachable. (Read: Has Unicon Securities shut shop?)
 
SEBI received a large number of complaints from the clients of Unickon Securities for non-receipt/ delay in payment of funds and accordingly advised the company to resolve complaints expeditiously.
 
The regulator undertook an inquiry into the matter and conducted an on-site inspection of the stock broking and depository participant operations of the company in March this year with a focus on investor grievance redressal mechanism.
 
SEBI also advised National Stock Exchange (NSE), BSE and securities depository Central Depository Services (India) Ltd (CDSL) to conduct an inspection of Unickon Securities.
 
SEBI found that Unickon Securities have violated various norms including non-redressal of investor grievances pertaining to “non-receipt of funds/ securities by clients”.
 
The regulator said funds raised by Unickon Securities by pledging the securities of its clients/ investors illegally were purportedly diverted to its other businesses.
 
Also, Unickon Securities did not have any system for internal audit and failed to submit the internal audit report for the half year ending September 2013 onwards to NSE and BSE.
 
“Unickon did not furnish the complete material information to SEBI as was sought by it during the inspection and the limited information furnished to SEBI in respect of its bank accounts and the status of unresolved complaints pending against it,” SEBI noted.
 
”...the conduct of Unickon Securities and its promoters/directors is not in the interest of investors in the securities market,” it added.
Comments
rajesh kumar gupta
1 decade ago
i am rajesh kumar gupta from kanpur (UP). i have good amount of shares in unicon account. i also want my money back.. please help, how can i get my money back???
H A Madhu
1 decade ago
Dear Mr.Ajay Sharma

Please log a complaint against unicon securities with all details through http://www.score.gov.in.

don't worry you will get back the holding to CDSL DP

Thanks & Regards

H A Madhu

Ph:7899088952
Ajay Sharma
Replied to H A Madhu comment 1 decade ago
Thank you Madhu for responding. I had filed complaints long time back but status only shows that they has sent intrim notice to unicon. Not sure when we will get the shares back. Has anyone got any update from anywhere ?
Ajay Sharma
1 decade ago
I have a good amount of shares holding into unicon account which is still in pool account. Could anyone help how to take money back ?? If there are multiple people like me please form a group and let us go to office for a protest to get the money back..Please mail me at : [email protected]
i am reachable at 9540333033
rajesh kumar gupta
Replied to Ajay Sharma comment 1 decade ago
i am rajesh kumar gupta from kanpur (UP). i have good amount of shares in unicon account. i also want my money back.. please help, how can i get my money back???
Hiren
Replied to Ajay Sharma comment 1 decade ago
i am from mumbai and many a times i had tried visiting stock exchanges and depository participan CDSL offices but even the regularities also dont have any answers with them. I feel that all the investors should come together and file a PIL against SEBi and stock exchanges since they are responsible in delaying consumer greviances. Moreover a police complaint should be filed against RAM Gupta one of the director of unicon sec pvt ltd.

Reach me @ [email protected]
sanjay
Replied to Hiren comment 1 decade ago
but how can unicon hold the shres belonging to clients ? where is the exchange fund which protects cliens from fraud . Each client is entitled to Rs. 10 lakhs from the investor protection fund
sail
Replied to sanjay comment 1 decade ago
Seriously, Sebi needs to take some stern action against unicon director though i think our money is save as nse protects the investor upto 15 lakh and they will payout from nse investor protection fund but at the same time i think this process will take very long time to complete ...
sanjay
Replied to sail comment 1 decade ago
Yes you are correct .
sanjay
1 decade ago
Is Unicon closed ? what happens to all clients ?
Hrishikesh Sharma
1 decade ago
SEBI order bars the directors from dealing in securities but what about the money of investors embezzled by Unicon?...Why is SEBI order silent on how investors will get their money back?.....Request moenylife team to take up this matter with SEBI who seems only interested in pursuing big cases like Sahara
Ravi Kumar Singhal
1 decade ago
The company shut down its office at Ghaziabad without information to anyone. Now, I have approach to its Noida Office. No share is given to me (withheld by the company in Pool Account). After, the company given me two cheques with postdated. One cheque was deposited into bank on due date, but this cheque was bounced. Second cheque is post dated for the next month. What i have to do now?
sanjay
Replied to Ravi Kumar Singhal comment 1 decade ago
are cheques being issued by Unicon bouncing ?
Ravi Kumar Singhal
Replied to sanjay comment 1 decade ago
Yes, cheques are issued by Unikcon Securities Pvt. Ltd.
sumaaent
1 decade ago
what will happen to shares and cash lying of clients
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