A probe conducted by Sebi had found that MCX Biz Solutions allegedly solicited money from investors for huge returns while using fake and forged broker registration documents and a name similar to that of an exchange group. The entity has no relation to the Multi Commodity Exchange (MCX).
The Securities and Exchange Board of India in 2013 had passed an interim order barring MCX Biz and its proprietor Syed Sadaq from dealing in the capital markets as well "to cease and desist" from undertaking any activity in the market, till further orders.
Besides, the broker was prohibited from mobilising funds from the public.
It was also directed to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, websites in relation to any activity in the securities market. In its latest order today, Sebi whole time member Rajeev Kumar Agrawal said that he "did not find any reason to draw any inference other than those drawn in the interim order".
"However, a detailed investigation by Sebi may bring to light the depth of such activities that are carried out by Syed Sadaq and the extent of funds mobilised, in whatever form, from the investors," Agrawal noted.
"In the light of the facts and circumstances of the case, I am of the considered view that pending investigation in the matter no intervention is called for at this stage in either vacating the direction or modifying it," he added.
Accordingly, the whole time member has confirmed the directions issued in respect of MCX Biz and Sadaq vide ad interim ex-parte order dated November 18, 2013.
In that order, Sebi had prima facie observed that MCX Biz had displayed a fake and forged certificate of sub broker registered with Sebi and claimed it was affiliated to Bonanza Promotional Ltd.
It was found that neither MCX Biz Solutions, Syed Sadaq nor Bonanza Promotional were registered with Sebi as sub broker or stock broker, respectively.
MCX Biz and Sadaq had also floated false brochures and information on its website soliciting and collecting money from public at large and promising high returns on their investments.
They had also made representations and statements on their website about their activities in securities market which was in reckless and careless manner and had suggested facts which were false and untrue.
"By their acts they had fraudulently solicited, enticed and induced investors to deal in securities," Sebi said.


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