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Markets regulator Sebi on Tuesday barred Orion Capital as well as Orion Broking and their partners from the securities markets for 10 years for failing to redress several investor grievances pertaining to non- settlement of funds due to the clients. The nature of investor complaints received against both the firms are predominantly on non-settlement of the funds and securities and balances due to their clients.
The claim amount is more than Rs 6 crore against Orion Capital and over Rs 4 crore against Orion Broking. "Orion Capital and Debt Market and Orion Broking Services India have failed to redress the investor grievances till date," Securities and Exchange Board of India (Sebi) said in an order. "Arbitration Awards were passed against Orion Capital and Orion Broking and none of the Awards has been implemented by the noticees," it added. Besides, the two entities closed their business without any prior intimation to their affiliated exchanges or to their clients. By indulging in such activities, the two firms and their partners have failed to act in accordance with the requirements of the stock brokers regulations, Sebi Whole-Time Member S Raman said in an order. "In view of the gravity of the violations perpetrated by Orion Capital, Orion Broking and their partners ... I am of the opinion that they should not be allowed to have access to the securities market in view of the possible danger to the investors at large," he added. Accordingly, Sebi has restrained Orion Capital, Orion Broking, Johnson Puthiaparambil Jose, Cinzy Johnson and Joseph Puthiaparambil Chacko from "buying, selling or otherwise dealing in the securities market, directly or indirectly in whatsoever manner for a period of 10 years". Also, they have been barred from alienating any of their assets in any form till the full settlement of claims of its investors are effected. The regulator also noted that CB-CID has already initiated proceedings against Orion Capital and Orion Broking and seized their properties.