SEBI Vs. SUNIL KUMAR KAYAN
SECURITIES APPELLATE TRIBUNAL
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(1.) SHRI Sunil Kumar Kayan (Trade Name: Sunil Kumar Kayan & Co.) (hereinafter referred to as "Sunil Kayan") is a member of The Calcutta Stock Exchange (hereinafter referred to as "the exchange") and a stock broker registered with SEBI under Registration No. INB 030668917
(2.) The Securities and Exchange Board of India (hereinafter referred to as "SEBI") received information that Sunil Kayan was indulging in illegal trading in securities. Whole Time Member, SEBI, vide order dated 13.8.2003 directed that an inspection of the office of Sunil Kayan be undertaken by SEBI. Pursuant to the order, inspection of the office of Sunil Kayan at 8, Lyons Range, Kolkatta - 700001 was undertaken on 14.8.2003.
1. It was noted that around 40 persons were engaged in trading in the premises and these persons ran away on seeing the inspecting officials. It was also noted that three trading terminals of the National Stock Exchange (hereinafter referred to as "NSE") were being operated in the office of Sunil Kayan. The inspecting officials were informed that two of the three trading terminals were given by Shri Sanjay Bansal and one by GCM Securities.
2. The inspection team also made the following findings :
1. The trading terminals in the premises of Sunil Kayan were unauthorised.
2. Sunil Kayan had extended the use of those unauthorised trading terminals to various persons or entities.
Sunil Kayan had traded in certain scrips in quantities of ones and twos and such transactions constituted around 70% of his total trades. Many such transactions entered into by Sunil Kayan on his own account as well as on account of his wife /others were found to be squared off by the end of the day. The net amount receivable in such transactions was between Rs.0.70 to Rs.4.33.
(3.) HANDWRITTEN /printed papers found in the office of Sunil Kayan showed that he had transacted in futures and options although he did not have a valid registration from SEBI as a trading / clearing member on the Futures & Options segment of NSE.;
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