sebi:AO/SG-VS/EAD/71/2017
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Facts / Headnote
Penalty imposed on the Noticee for violations of regulation 9(e) and clauses A(2) & A(5) of Schedule II read with regulation 9(f) of the Stock Brokers Regulations; no adverse inference drawn on KYC/AML allegations under regulation 17(1)(n).
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 199
- Reg. 6
- Reg. 9(f)
- Reg. 17
- Reg. 9
- Reg. 9(e)
- Reg. 17(1)(n)
- Reg. 12A(1)
- Reg. 12
- Reg. 12A
Parties
- M/s Nirmal Bang Securities Private Limited
Holding
The Noticee was held liable for violating regulation 9(e) of the Stock Brokers Regulations (failure to take adequate steps for redressal of investor grievances within one month) and clauses A(2) & A(5) of the Code of Conduct under Schedule II read with regulation 9(f), attracting penalties of ₹1,00,000 each under Section 15HB of the SEBI Act. No adverse inference was drawn regarding the alleged violation of regulation 17(1)(n) and Clause 8 of the AML/CFT Master Circular concerning KYC document retention.
Full text
Adjudication Order in respect of M/s Nirmal Bang Securities Private Limited Page 2 of 35 whether there is adequate infrastructure for the same. It was observed that Noticee had appeared in the list of top 10 stock brokers against whom complaints of unauthorized trades were lodged in the exchanges/SEBI. Based on the inspection, the following violations were alleged against the Noticee:
Adjudication Order in respect of M/s Nirmal Bang Securities Private Limited Page 3 of 35 (d) It was therefore alleged that NBSPL had violated the provisions of regulation 9(e) of SEBI (Stock Brokers & Sub Brokers) Regulations, 1992 (hereinafter referred to as ‘Stock Brokers Regulations’),
Adjudication Order in respect of M/s Nirmal Bang Securities Private Limited Page 4 of 35 the Code of conduct specified under Schedule II read with regulation 9(f) of the Stock Brokers Regulations.
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Source: SecMarx — sebi:AO/SG-VS/EAD/71/2017. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.