SEBI finds Modex misappropriated client funds and falsified records
This is a final order by SEBI regarding Modex International Securities Ltd. and its two directors, concerning allegations of misappropriating client funds and securities, falsifying records, and misrepresenting accounts.
Modex International Securities Ltd., Mr. Dharmendra Kumar Arora, Mr. Pavan Kumar Sachdeva
- SEBI found violations including diversion/misappropriation of client securities and funds, shortfall of client funds, and misrepresentation of books and accounts.
- SEBI confirmed interim directions restraining the Noticees from accessing the securities market and dealing in securities.
- SEBI directed that assets of the Noticees be utilized for the payment of money or delivery of securities to clients/investors.
- SEBI directed stock exchanges and clearing corporations to ensure shortfalls of client funds are made good through the realization of funds from the assets of the Noticees.
- A forensic audit conducted by NSE for the period April 1, 2017, to January 24, 2020, was relied upon for these findings.
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Document details
| Official title | Final Order in the matter of Modex International Securities Ltd. |
| Source body | Securities & Exchange Board of India (SEBI) — enforcement orders |
| Reference number | — |
| Status | None (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |