SHRI M.

DAMODARAN
CHAIRMAN, SEBI
MITTAL COURT, “B” WING
NARIMAN POINT
MUMBAI

SUB:- REQUEST FOR PROPER INQUIRY INTO MY COMPLAINT AGAINST M/S

SUNGLOW CAPITAL SERVICE LTD, 4382/4B 2NDFLOOR,MURARILAL STREET,
ANSARI ROAD, DARYAGANJ-DELHI 110002 AND THEIR AGENT/ SUB-BROKER
MR. ANIL THUKRAL/MR B.R.ARORA

First of all accept my congratulations on being appointed as Chairman of an

Important Organisation like Securities Exchange Board of India.

I have heard of your investor’s friendly attitude while acting as Chairman of

UTI. Encouraged by your this reputation I TAKE LIBERTY TO PUT FEW LINES
FOR YOUR KIND CONSIDERATION AND ACTION.

1. I sent complaint on 25/08/2003 to SEBI regarding cheating/dabba trading by

NSE trading member M/S Sunglow Capital Services Ltd , not returning shares
of complainant, appointment of illegal agents/sub-broker etc.

2. Although after lot of pursuance SEBI, the term of appointment and scope of
inquiry etc appointed Mr. Anant Barua as Adjudicating officer were not
informed to me.

3. Mr. Anant Bureau Adjudicating officer did not give proper opportunity to
complainant and did not take up violation of sections 15F, 15 HA and dabba
trading, illegal appointment of agent by M/S Sunglow, illegal working of Mr.
Anil Thukral, Mr. B.R.Arora violating section 12 of act.

4. As per Section 11 C, which is reproduced below: -

Investigations 11C. (1) Where the Board has reasonable ground to believe that
–
a. The transactions in securities are being dealt with in a manner
detrimental to the investors or the securities market; or
 b. any intermediary or any person associated with the securities market
has violated any of the provisions of this Act or the rules or the
regulations made or directions issued by the Board thereunder.
i. It may, at any time by order in writing, direct any person
(hereafter in this section referred to as the Investigating
Authority) specified in the order to investigate the affairs of such
intermediary or persons associated with the securities market
and to report thereon to the Board.
AS SUCH SEBI BOARD SHOULD ORDER FULL FLEDGED INQUIRY INTO
AFFAIRS OF THE RESPONDENT M/S SUNGLOW COVERING THE major
issue of dabba trading by the broker M/S SUNGLOW AND major issue of
working of MR. ANILTHUKRAL/BR ARORA as illegal agent/sub-broker of
M/S SUNGLOW . these issues have not been taken up which violate
provision of act and are against the interests of investors.

5. Section 15 F, which states that Penalty for failure in case of stock

Brokers 15F. If any person, who is registered as a stock broker under this

Act, -

i. fails to issue contract notes in the form and manner specified by the
stock exchange of which such broker is a member, he shall be liable to a
penalty not exceeding five times the amount for which the contract note
was required to be issued by that broker;
ii. fails to deliver any security or fails to make payment of the amount due
to the investor in the manner or within the period specified in the
regulations, he shall be liable to [a penalty of one lakh rupees for each
day during which such failure continues or one crore rupees, whichever
is less.]52
iii. charges an amount of brokerage which is in excess of the brokerage specified
in the regulations, he shall be liable to [a penalty of one lakh rupees]53 or five
times the amount of brokerage charged in excess of the specified brokerage
whichever is higher.
Stock Broker has violated section 15 F (i) & (ii) BUT SEBI BOARD
HAS NOT TAKEN ANY ACTION.

6. [Penalty for fraudulent and unfair trade practices 15HA. If any person
indulges in fraudulent and unfair trade practices relating to securities, he shall
be liable to a penalty of twenty-five crore rupees or three times the amount of
profits made out of such practices, whichever is higher.
 Complaint had alleged the fraudulent and unfair trade practices committed by the
M/S Sunglow and his agents/sub-brokers ( Dabba Trading) BUT NO ACTION
HAS BEEN TAKEN TILL DATE.

More than one year has passed and NSE/SEBI officials are ignoring directions of law
to favour the accused and injure the complainant, not taking any action as required
under law on serious charges of dabba trading, illegal working of MR. ANIL
THUKRAL & MR. B.R.ARORA as agent/sub-broker of M/S SUNGLOW CAPITAL
SERVICES LTD.

You will kindly agree that running parallel stock exchange/ dabba trading,
dealing in securities illegally and working as unauthorised intermediary by
some persons is not in interest of small investors as such SEBI has to take
action to curb this activity.

I request that that in view of above submissions, the following orders may
please be passed

a) Order full fledged inquiry against M/S Sunglow Capital Services Ltd
including charges of dabba trading, appointing the illegal agent/sub-
broker, dealing in securities by Mr. Anil Thukral/B.R, Aurora illegally,
covering Section 15 F, 15 HA, 15 HB, besides 15 B & 15C .

b) Order respondent M/s Sunglow to return all shares transferred by

complainant and shares purchased from funds of the complainant.

S.K.Kapoor
3, SUNSHINE APARTMENT,
A-3, PASCHIM VIHAR,
NEW DELHI-110063