SEBI finds ₹125.92 crore shortfall in Modex International Securities Ltd

This is a final order by SEBI regarding Modex International Securities Ltd, a registered stock broker, concerning allegations of misappropriation of client funds and securities, falsification of records, and other regulatory violations.

Modex International Securities Ltd (SEBI Registration No. INZ000211434); Mr. Pawan Kumar Sachdeva (Director/Authorized Representative); Mr. Dharmendra Kumar Arora (former key decision-maker, deceased).

• SEBI found that the company misappropriated client funds and securities, resulting in a shortfall of Rs. 125.92 Crore.
• SEBI found that the company falsified the Register of Securities of clients and misrepresented its books and accounts.
• SEBI found that the company made improper periodic payments to clients and engaged in business activities other than stock broking.
• The Designated Authority recommended cancelling the company's registration as a Stock Broker.
• A forensic audit conducted by KPMG (appointed by NSE) revealed the misappropriation and shortfalls.
• The company did not reply to the initial pre-enquiry show cause notice, leading to ex-parte proceedings at that stage.
• The company was represented in later hearings by Mr. Pawan Kumar Sachdeva, who stated the company is not in operation.

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