sebi:BS/AO-67/2007
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Facts / Headnote
Adjudication proceeding disposed of without imposing any monetary penalty
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 19H
Regulations
- Reg. 20(2)(e)
- Reg. 42(1)
- Reg. 20(A)
Parties
- Peninsular Capital Market Limited
Holding
The Company failed to comply with SEBI circular SMDRP/POLICY/CIR-36/2000 and certain provisions of the DP Regulations regarding account opening procedures, but no monetary penalty was imposed because the irregularities had been rectified. No adverse findings were recorded on the allegations of co-mingling of securities and failure to redress investor grievances.
Full text
2 c. The Company had violated Regulation 20(2)(e) of the DP Regulations as it was alleged that the Company failed to have proper inward system, proper records and filing of complaints received, redressed and other correspondence pertaining to the same and hence violated the provisions of Regulation 20(2)(e) of the DP Regulations.
3 without following the account opening procedure as mentioned in the said circular. Submission by the Company: i. The Company submitted that measures had been taken to rectify the discrepancies. The practice of stapling photographs to the Account Opening Forms had been done away with. The forms perused by SEBI were pertaining to the year 2000-2001. Currently, all photographs were pasted. In case of forms which did not have a proper introduction, introduction had been obtained. Schedules of
4 Findings It is pertinent to note that the lapses have been admitted by the Company. As mentioned before, the main irregularities found in the inspection were stapling of photographs on the forms as opposed to the normal practice of affixing the same on the forms, accounts opened without proper introduction, lack of identity proof and schedule of charges not being attached to the forms. It is noted from the submissions of the Company that subsequent to the inspection conducted by SEBI it has taken necessary measures to rectify the irregularities in the account opening form. In this regard along with their reply in the letter dated June 21, 2007, the Company had submitted their account opening form and submitted that the discrepancies observed in the inspection report have been rectified. Subsequent to the hearing the Company has also submitted a sample of their current account opening form which bears a schedule of
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Source: SecMarx — sebi:BS/AO-67/2007. 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.