SEBI v. Amrapali Aadya Trading & Investment Pvt Ltd and Aadya Commodities Pvt Ltd (broker misuse of client assets, 2022)
Judgment entered
Checked against the primary document on October 9, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.
In November 2022 a SEBI whole time member cancelled the stockbroker registrations of Amrapali Aadya Trading & Investment and its commodities affiliate after finding that they had sold and pledged client securities, shorted client funds by about Rs 71.91 crore and falsified records. No monetary penalty was imposed in this order.
The record
| Agency | SEBI (India) |
|---|---|
| Date filed | 2022-11-14 |
| Date resolved | 2022-11-14 |
| Court | SEBI Whole Time Member |
| Status | judgment |
| Asset class | equities |
| Instruments | clients' funds and securities held by stockbrokers |
| Venue | NSE, BSE, MSEI, MCX |
| Criminal parallel | No |
| Bars imposed | Certificates of registration as stockbrokers cancelled |
| Defendants | Amrapali Aadya Trading & Investment Pvt Ltd ; Aadya Commodities Pvt Ltd |
| Also named elsewhere | Aadya Commodities Pvt Ltd |
| Techniques |
What was ordered
- Civil penalty
- —
- Disgorgement
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- Prejudgment interest
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- Total relief
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- Alleged gain
- —
What is alleged to have happened
This order of 14 November 2022 was made by SEBI whole time member S. K. Mohanty under section 12(3) of the SEBI Act and the Intermediaries Regulations. The noticees are Amrapali Aadya Trading & Investment Pvt Ltd, a stockbroker registered with NSE, BSE and MSEI, and Aadya Commodities Pvt Ltd, a commodity derivatives broker on MCX. The first had been expelled from NSE as a defaulter in October 2017 and the second from MCX in August 2018.
A SEBI designated authority had reported in July 2021 on the period April 2011 to March 2017 and recommended cancelling both registrations. The allegations were that the brokers failed to answer summons, mixed client money with their own, sold client securities through an employee's account, pledged client securities to raise loans, moved client money to third parties, related companies and directors, did other business such as cash withdrawals and assured returns to investors, falsified accounts to hide this, skipped running-account settlements and ignored client complaints. These were said to breach section 12A of the SEBI Act and PFUTP Regulation 3, among other rules.
The whole time member accepted the report. He found among other things that the first company had sold client securities worth Rs 130.85 crore, had raised Rs 51.63 crore in loans against pledged client shares, and held a net shortfall of about Rs 71.91 crore against what it owed clients. A securities shortfall of Rs 411.3 crore was also noted, and a net Rs 32.62 crore was transferred to related parties and directors. The order records falsified trial balances and bank-book entries, and 2,926 pending complaints with claims of about Rs 235 crore.
The directions cancelled the certificates of registration of both noticees with immediate effect. The order imposes no money penalty and no disgorgement, and the record does not show whether clients were repaid or whether any criminal case followed.
No library technique matches misappropriation of client assets by a broker, so the technique list is empty.
This library tags the matter with no technique and records it as broker fraud on clients, ending in cancellation of registration. The tagging is ours, not the regulator's.
For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.
Timeline
- 2022-11-14 SEBI order
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.