sebi:EAD-9/VKV/GSS/2020-21/9143
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Facts / Headnote
Noticee found liable for violations of section 23D of SCRA r/w SEBI Circulars; penalty quantum not stated in the provided excerpts
Provisions invoked
- s. 15A
- s. 15
- s. 12
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
- s. 23
- s. 23D
- s. 2(68)
Regulations
- Reg. 7
- Reg. 199
- Reg. 17
- Reg. 6A(1)(e)
- Reg. 58
- Reg. 85
Parties
- Bonanza Portfolio Ltd.
Holding
The Noticee, Bonanza Portfolio Ltd., was held to have violated section 23D of the SC(R) Act 1956 read with SEBI Circular SMD/SED/CIR/93/23321 dated November 18, 1993 and SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016, on multiple counts including non-segregation/mis-utilization of client funds and securities, misuse of client securities through pledging, non-settlement of running accounts, non-maintenance of books of accounts, and net-worth computation deficiencies.
Full text
Adjudication Order in the matter of Bonanza Portfolio Ltd. Page 2 of 38 15HB of SEBI Act and section 23-D of SCRA and if satisfied that the Noticee is liable for imposition of
Adjudication Order in the matter of Bonanza Portfolio Ltd. Page 3 of 38 4. Subsequently, vide e-mail dated June 04, 2020 i.e. post lock down, the Noticee was advised to submit its response within one week, failing which the matter shall be proceeded further on ex-parte basis. Thereafter, the Noticee vide e-mail dated June 08, 2020, sought for another extension of three weeks starting from June 08, 2020, to submit its response to the SCN. The same was granted to the Noticee vide e-mail dated June 10, 2020. Subsequently, vide e-mail dated June 29, 2020, the Noticee submitted its reply to the SCN.
Adjudication Order in the matter of Bonanza Portfolio Ltd. Page 4 of 38 (b) Clients ledger; (c) General ledger; (d) Journals; (e) Cash book; (f) Bank pass book; (g) Documents register containing, inter alia, particulars of securities received and delivered in physical form and the statement of account and other records relating to receipt and delivery of securities provided by the depository participants in respect of dematerialized securities;] (h) Member’s contract books showing details of all contracts entered into by him with other members of the same exchange or counterfoils or duplicates of memos of confirmation issued to such other members; (i) Counterfoils or duplicates of contract notes issued to clients; (j) Written consent of clients in respect of contracts entered into as principals; (k) Margin deposit book; (l) Omitted (m) Omitted (n) Client account opening form in the format as may be specified by the Board.] (2) Every stock broker shall intimate to the Board the place where the books of account, records and documents are maintained. (3) Without prejudice to sub-regulation (1), every stock broker shall, after the close of each accounting period furnish to the Board if so required as soon as possible but not later than six months from the close of the said period a copy of the audited balance sheet and profit and loss account as at the end of the said accounting period: Provided that, if it is not possible to furnish the above documents within the time specified,
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Source: SecMarx — sebi:EAD-9/VKV/GSS/2020-21/9143. 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.