AK Capital Group pays Rs 4.3 cr to settle unfair trade practices case

New Delhi: AK Capital Group has settled a case with the markets regulator Sebi over allegations of indulging in unfair trade practices in the issuance of Non-convertible Debentures (NCDs). The group agreed to pay Rs 4.3 crore towards settlement and disgorged Rs 76 lakh, along with interest of Rs 56 lakh, as per a Sebi order issued on Thursday. The matter relates to violations of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms in the issuance of NCDs).

The ruling came after merchant banker A K Capital Finance Ltd (AKCFL); stock broker A K Stockmart Pvt Ltd (AKSPL); NBFC A K Capital Services Ltd (AKCSL); along with E-Ally Securities (India) Pvt Ltd (EASPL) and Ridhi Sidhi Distributors Pvt Ltd (RSDPL) --collectively referred to as AK Capital Group -- filed a suo motu settlement application with Sebi. The entities proposed to settle the alleged regulatory violations by “neither admitting nor denying the findings” under the settlement rule.

Following the payment, Sebi said that “any proceedings that may be initiated for the violations … are settled,” thereby bringing the case to a close. The case originated from a Sebi investigation into the activities of AK Capital Group in connection with Dewan Housing Finance Ltd (DHFL).