sebi:JYSKE/AO/DRK/AS/EAD-18/2009
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Facts / Headnote
Penalty of Rs. 2,00,000 imposed for violation of Regulation 13(1)(e)
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 13
- Reg. 13(1)
- Reg. 13(1)(e)
Parties
- JYSKE Invest Fund Management A/S
Holding
The noticee violated Regulation 13(1)(e) of SEBI FII Regulations by delayed intimation of sub-account name changes, and a penalty of Rupees Two Lakhs under Section 15HB of the SEBI Act, 1992 was imposed.
Full text
Page 2 of 5 of Regulation 13(1)(e) of SEBI FII Regulations alleged to have been committed by the noticee on account of the delay in intimating SEBI about the name changes of its sub accounts.
Page 3 of 5 CONSIDERATION OF EVIDENCE AND FINDINGS 5. The allegation against the noticee is that it violated Regulation 13(1)(e) of the SEBI FII Regulations. The text of the said regulation is as follows:- Regulation 13- Procedure and grant of registration of sub-accounts. (1) For the purpose of grant of registration the Board shall take into account all matters which are relevant to the grant of such registration to the sub-account and in particular the following, namely :— (e) the applicant and the Foreign Institutional Investor through whom the application for registration is made, have submitted joint undertakings as required by Form AA of the First Schedule Part III 5 of the Undertaking and Declarations of Form AA of the First Schedule states that the FII and the sub accounts undertake that they will immediately notify the Securities and Exchange Board of India and the Reserve Bank of India of any change in the information provided.
Page 4 of 5 the name changes of the sub accounts as against “immediately” as stated in para 5 above. 8. It is noted that the noticee has admitted that there was a delay in informing SEBI about the aforesaid name changes of its sub accounts and the noticee has apologized for the same in the proceedings. The noticee submitted that due to unclear internal procedures/ change of responsible personnel, all the name changes have not been reported to SEBI in due time. The name change is a material change having major bearing on the registration. A legal entity is identified with its name and the change in the name, changes the very identity of the legal personality. The delay of almost one year in furnishing such material information with regard to the registration of sub accounts to SEBI by the noticee, a SEBI registered FII is not tenable and amounts to violation of the provisions of Regulation 13(1) (e) of SEBI FII Regulations.
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Source: SecMarx — sebi:JYSKE/AO/DRK/AS/EAD-18/2009. 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.