Calcutta, Aug. 20: Sebi — the securities market regulator — has, at long last, hauled up Lyons Range casino operator Sunil Kumar Kayan and his associates.
After carrying out an extensive investigation last week, Sebi today barred Kayan and his associate Sanjay Bansal from dealing in shares till completion of the inquiry.
Sebi, in its interim order, has cited several irregularities in the dealings of Kayan and Bansal as grounds for its decision. The allegations include illegitimate trading in futures and options, and off-market transactions.
Kayan has, for all practical purposes, been running a casino behind Writers’ Buildings. Till the other day, he would say he had perfected the art of gambling in stocks.
Encouraged by the success of his outfit in Lyons Range, he had spread his business to Burdwan and other parts of Calcutta. His position was, as long as his clients were comfortable with the way he operated, the authorities should not bother.
Sebi mentions in its interim order that 40-odd clients fled Kayan’s office when the inspectors turned up. The investigation revealed that Kayan’s clients have been betting on movements in stock prices without executing trades on the bourses.
Kayan is a member of the Calcutta Stock Exchange, but now trades on the National Stock Exchange (NSE) only. He is not a member of NSE, but used terminals provided by Bansal and CGM Securities Ltd — a local brokerage.
Sebi says the terminals were provided without proper authorisation. Though it has not taken any steps against CGM Securities, it has asked the NSE authorities to consider appropriate action.