sebi:MC/CB/2019-20/4260

SEBI · SEBI · 2019-06-14 · Maninder Cheema, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violation established; penalty of Rs 3,00,000 imposed under Section 23D of SCRA

Provisions invoked

• s. 12
• s. 23
• s. 23J
• s. 23D
• s. 23I

Parties

• Alpha Commodity Private Limited

Holding

The Noticee violated SEBI Circular dated November 18, 1993 and Section 23D of the SCRA by misusing funds of clients with credit balance to settle obligations of debit-balance clients and for own purposes including transfers to LKP Securities Ltd. A monetary penalty of Rs 3,00,000 under Section 23D of the SCRA was imposed on M/s Alpha Commodity Private Limited.

Full text

Adjudication Order in the matter of Alpha Commodity Private Limited Page 2 of 14 SHOW CAUSE NOTICE, REPLY AND HEARING 4. A Show Cause Notice No. EAD/EAD5/MC/CB/2019/14960 dated June 14, 2019 (hereinafter be referred to as, the “SCN”) was served upon the Noticee under Rule 4(1) of the SCR Adjudication Rules to show cause as to why an inquiry should not be held against it in terms of Rule 4 of the SCR Adjudication Rules and penalty be not imposed under Section 23D of the SCRA for the alleged violations of Circular dated November 18, 1993 and Section 23D of SCRA.

Adjudication Order in the matter of Alpha Commodity Private Limited Page 3 of 14 03/10/2016 9,271,632.37 66,545,475.12 82,241,608.93 111,397,856.76 (15,696,133.81) 17/10/2016 698,459.61 75,045,475.12 84,467,763.57 111,390,309.06 (9,422,288.45) 25/10/2016 2,279,564.45 71,545,475.12 81,449,852.52 111,411,062.75 (9,904,377.40) 28/10/2016 1,016,158.67 68,545,475.12 79,749,743.78 111,420,177.84 (11,204,268.66) 23/11/2016 3,114,618.30 37,545,475.12 51,871,303.28 111,386,417.22 (14,325,828.16) 30/11/2016 3,392,439.10 37,545,475.12 49,379,810.02 111,337,921.66 (11,834,334.90) 08/11/2016 4,787,649.66 37,545,475.12 57,868,470.00 111,411,853.04 (20,322,994.88) 05/10/2016 4,156,450.57 68,545,475.12 89,662,996.29 111,423,452.00 (21,117,521.17) 10/11/2016 2,645,370.48 37,545,475.12 55,723,350.77 111,358,213.20 (18,177,875.65) 22/11/2016 3,058,859.49 37,545,475.12 51,811,857.30 111,392,240.39 (14,266,382.18) 10/10/2016 1,987,891.39 76,545,475.12 84,635,839.42 111,431,343.98 (8,090,364.30) ,

Adjudication Order in the matter of Alpha Commodity Private Limited Page 4 of 14 iv. It was alleged that the Noticee, by failing to segregate money of its clients, using the money of its clients for itself or for other clients and by using the funds of the clients with credit balance for purposes other than those mentioned in the SEBI Circular dated November 18, 1993, had violated Section 23D of the SCRA and SEBI Circular SMD/SED/CIR/93/23321 dated November 18, 1993.

Source: SecMarx — sebi:MC/CB/2019-20/4260. 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.