sebi:EAD-3/JS/GSS/72/2018-19
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Facts / Headnote
Penalty of Rs. 15,00,000 imposed on the Noticee under section 19G of the Depositories Act, 1996 for violations of Clause 11 of the Code of Conduct (Third Schedule) read with Regulation 20AA of the SEBI (Depositories and Participants) Regulations, 1996 and SEBI Circular No. CIR/MRD/DMS/13/2010 dated April 23, 2010.
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 19G
Regulations
- Reg. 20A
Parties
- Unickon Securities Pvt. Ltd.
Holding
The Noticee violated Clause 11 of the Code of Conduct (Third Schedule) read with Regulation 20AA of the DP Regulations and SEBI Circular No. CIR/MRD/DMS/13/2010 by using a PoA format containing discretionary language ('sole and absolute discretion') inconsistent with the circular's guidelines and by retaining absolute charge over client securities, thereby prohibiting clients from operating their accounts. A penalty of Rs. 15,00,000 was imposed under section 19G of the Depositories Act, 1996.
Full text
Adjudication order in the matter of Unickon Securities Pvt. Ltd. 2 SHOW CAUSE NOTICE, WRITTEN SUBMISSIONS, PERSONAL HEARING, ADDITIONAL WRITTEN SUBMISSIONS
Adjudication order in the matter of Unickon Securities Pvt. Ltd. 3 SEBI Circular No. CIR/MRD/DMS/13/2010 dated April 23, 2010:- SEBI Circular The Stock Brokers shall take necessary steps to implement this circular latest by May 31, 2010 for the new clients and ensure to take necessary steps latest by September 01, 2010 to revoke those authorizations given by the existing clients to the stock brokers/ stock broker and depository participants through PoA that are inconsistent with the present guidelines.
Adjudication order in the matter of Unickon Securities Pvt. Ltd. 4 10. It is to be mentioned that the clauses 12 and 19 of the Guidelines for execution of PoA mentioned under SEBI Circular, reads as: “The POA shall not facilitate the stock broker to do the following:
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Source: SecMarx — sebi:EAD-3/JS/GSS/72/2018-19. 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.