sebi:EAD-9/SM/11/2019-20
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Facts / Headnote
Penalty of Rs. 2,00,000 imposed on the Noticee
Provisions invoked
- s. 15
- s. 19
- s. 15G
- s. 15J
- s. 19H
- s. 19G
- s. 19I
Regulations
- Reg. 20A
- Reg. 20(2)(b)
Parties
- IFCI Financial Services Ltd
Holding
The Noticee violated Clause 11 of the Code of Conduct read with Regulation 20AA and Regulation 20(2)(b) of DP Regulations and SEBI PoA Circulars by failing to standardize/revoke inconsistent PoAs, and is liable to a monetary penalty of Rs. 2,00,000 under Section 19G of the Depositories Act, 1996.
Full text
In the matter of IFCI Financial Services Ltd Page 2 of 9 Show Cause Notice, Reply and Personal Hearing: 4. Show Cause Notice dated February 20, 2019 (hereinafter referred to as ‘SCN”) was served on Noticee in terms of Rule 4 of AO Rules read with Section 19H of Depositories Act, 1996 calling upon the Noticee to show cause as to why an inquiry should not be held against the Noticee and penalty be not imposed under Section 19G of Depositories Act, 1996 for the alleged violation specified in the SCN.
In the matter of IFCI Financial Services Ltd Page 3 of 9 6.1.1. As per the circular/instructions received from SEBI, we had communicated the guidelines on POA regarding inconsistent clauses to all existing and new clients vide e-mails March 09, 2015 However, none of the client responded back to the e-mail. The same was communicated to SEBI vide letter dated April 13, 2015 that it had intimated to all registered clients for any objection, cancellation or revocation of the POA as per SEBI guidelines.
In the matter of IFCI Financial Services Ltd Page 4 of 9 Regulations and SEBI Circular No. CIR/MRD/DMS/13/2010 dated April 23, 2010 read with SEBI Cir. No. SEBI/Cir./MRD/DMS/28/2010 dated August 31, 2010? ii. If yes, then, does the violation, on the part of the Noticee attract monetary
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Source: SecMarx — sebi:EAD-9/SM/11/2019-20. 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.