SEBI bans Samir Arora for 5 years

Mumbai: The Securities and Exchange Board of India (SEBI) has barred the high profile fund manger, Samir Arora from the dealing in the securities market for five year. Arora, was the fund manger with Alliance Capital Mutual Fund (ACMF).

SEBI said the strict action should act as a "deterrent for others of similar disposition." Issuing the final order against the high profile fund manager, SEBI said that Arora can however sell the securities "currently held by him," but only after obtaining SEBIs
prior written permission.

In the order, SEBIs whole time director, T M Nagarajan said, "the conduct of Samir C. Arora was not in accordance with sound market principles. Considering the facts and circumstances of the case in totality and the blatant misconduct and violations committed by Samir Arora of the regulatory provisions, I find it a fit case warranting serious action against him for his misdeeds so as to act as a deterrent for others
of similar disposition."

Nagarajan also pointed out that SEBI has already initiated adjudication proceedings against ACMF. Justfying the action against Arora, Nagarajan said in the order,"normally, action needs to be taken against the entity found guilty of violation of law. However, a corporate body operates and acts through its directors and other key persons in charge of its business operations." "It may be, therefore, essential, in appropriate cases, to lift the corporate veil and take action against the individuals, whose conduct is primarily responsible for the misconduct or violation of law by corporate body besides action against the corporate body," the SEBI order posted on its website said.

He added that Arora being found guilty of misconduct and violation of law and primarily responsible for the commissions and omissions of the ACMF and its AMC, "therefore, action against him is required in order to protect the interest of investors and ensure safety, integrity and the orderly development of securities market."