Sebi bars Unicon Capital, directors from securities market

Regulator Sebi today barred Unicon Capital Services, its directors and key management personnel from the securities market for taking merchant banking assignments after the expiry of registration certificate.
Apart from the company, the Securities and Exchange Board of India has restrained its directors -- Gajendra Nagpal and Ram Mohan Gupta -- and its two key management personnel -- Pawan Dhanuka and Pritam.
Sebi said it bars them from "accessing the securities market and further prohibit them from buying, selling or dealing in securities market, either directly or indirectly or being associated with the securities market in any manner whatsoever, with immediate effect, till further directions".

According to the market regulator, Unicon Capital had ceased to be a Sebi registered merchant banker post December 21, 2012.
However, after the expiry of its certificate of registration, Unicon Capital had undertaken merchant banking assignments in case of SME issues of four companies -- Agrimony Commodities, Bio-esteem, Channel Nine Entertainment and Amsons Apparels -- and had filed draft prospectus with BSE SME segment.
Agrimony Commodities draft prospectus was filed in December 2013, while draft prospectus of other three companies were filed this year.
"I find that since Unicon Capital has acted as a merchant banker without having a certificate of registration from Sebi on the relevant dates when it filed the draft prospectus with BSE," Sebi Whole Time Member Rajeev Kumar Agarwal said in an ex-parte order.

Apart from this, the activities of Unicon Capital are also in contravention of the provisions of the merchant bankers regulations, which requires that any change in registration status/any penal action taken by Sebi is promptly informed to the clients.