sebi:EAD/KS/AA/AO/63/2017-18
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Facts / Headnote
Penalty of Rs. 2,00,000 imposed on R K Global Shares & Securities Limited under Section 15HB of the SEBI Act and Regulations 26(iii), (xii), (xvi) and (xx) of the Broker Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 6
- Reg. 9(f)
- Reg. 16
- Reg. 9
- Reg. 26
- Reg. 16(b)
Parties
- R K Global Shares & Securities Limited
Holding
The Noticee violated SEBI Circular No. MIRSD/Cir-23/2011 dated December 02, 2011, Regulation 16(b) of the KRA Regulations, 2011, SEBI Circular No. MIRSD/Cir-5/2012 dated April 13, 2012 and Clauses A(2) and A(5) of the Code of Conduct read with Regulation 9(f) of the Broker Regulations, and a monetary penalty of Rs. 2,00,000 was imposed under Section 15HB and Broker Regulations 26(iii), (xii), (xvi) and (xx).
Full text
Page 2 of 22 (b) Regulation 16 (b) of the SEBI {KYC (Know Your Client) Registration Agency} Regulations, 2011; (c) SEBI circular no. MIRSD/ Cir – 5/ 2012 dated April 13, 2012; and (d) Clauses A (2) and A (5) of the Code of Conduct prescribed for stock brokers contained in Schedule II read with Regulation 9(f) of the Broker Regulations.
Page 3 of 22 proof of identity, proof of address, PAN card, etc. The IPV is also carried out at the branch by our employee. The entire filled in KYC form is then forwarded to our Delhi / Kolkata office where the client code is generated and the account is actually opened. Once the complete KYC document is received at designated center, KYC team checks KRA status. If the client is not KRA registered, KYC is uploaded to the KRA. If client is already KRA registered client, their details are downloaded and verified against the collected documents. Change if any is uploaded to the KRA system.”
Page 4 of 22 Existing clients of intermediary who trade/ invest/ deal with it during the below mentioned time period Number of Clients (Active + New) Timeline for intermediary to upload existing client’s KYC data on KRA system & send KYC documents to KRA Number of KYC uploaded within the Timeline April 16, 2012 – June 15, 2012 5780 August 31, 2012 2849 June 16, 2012 – August 31, 2012 6281 October 31, 2012 3581 September 1, 2012 – October 31, 2012 6075 November 30, 2012 3474 November1, 2012 – December 31, 2012 6018 January 31, 2013 3358 January 1, 2013 – February 28, 2013 6117 March 15, 2013 3394 In view of the same, it was alleged that the Noticee had violated the provisions of SEBI circular no. MIRSD/Cir – 5/2012 dated April 13, 2012.
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Source: SecMarx — sebi:EAD/KS/AA/AO/63/2017-18. 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.