sebi:EAD-12/AO/SM/138/2017-18
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Facts / Headnote
Violation established; monetary penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 9(f)
- Reg. 26
- Reg. 9
Parties
- M/s J K Securities Private Limited
Holding
The Noticee violated SEBI Circular dated December 03, 2009 and Clauses A(1), (2) and (5) of the Code of Conduct read with Regulation 9(f) and Regulation 26(xvi) and 26(xx), attracting penalty under Section 15HB of the SEBI Act. A monetary penalty of Rs. 4,00,000 was imposed on M/s J K Securities Private Limited.
Full text
In the matter of M/s J K Securities Pvt. Ltd Page 2 of 14 3. Based on the findings of the inspection, SEBI has initiated Adjudication Proceedings against the Noticee for violating SEBI Circular dated December 03, 2009 and Clauses A (1), (2) and (5) of the Code of Conduct as specified in Schedule II read with Regulation 9(f) and Regulation 26(xvi) and 26(xx) of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992(hereinafter referred to as the “Stock Broker Regulations”) by the Noticee.
In the matter of M/s J K Securities Pvt. Ltd Page 3 of 14 quarters of Financial Year 2014-15. It was observed that, vide email dated April 06, 2015, the Noticee was requested to provide details of these unsettled client accounts. Vide email dated April 13, 2015, the Noticee submitted that the details provided earlier were incorrect and provided details of 79 unsettled client accounts (citing various
In the matter of M/s J K Securities Pvt. Ltd Page 4 of 14 ii. Client request goes to KYC department for verification of signature. iii. Upon confirmation of signature, the request is sent to Back Office executive who calls the client and confirms the details of change request with the client. iv. Upon telephonic confirmation, one person (Maker) of back office department then modifies the settings in the client master. v. The modification done by maker is approved by a checker. vi. Open settlements are settled in line with SEBI directive. vii. Confirmation is given to the client of changing his mode of settlement.
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Source: SecMarx — sebi:EAD-12/AO/SM/138/2017-18. 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.