sebi:ORDER/SBM/KL/2022-23/17216
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Facts / Headnote
Violations upheld against the Noticee on multiple charges (misuse of client funds, pledging of client securities, non-settlement of client funds, incorrect reporting, inter-corporate advances); penalty quantum not stated in the excerpt provided
Provisions invoked
- s. 15
- s. 19
- s. 12
- s. 15H
- s. 15J
- s. 12A
- s. 23I
- s. 23J
- s. 23
- s. 23D
Regulations
- Reg. 13
- Reg. 9(f)
- Reg. 9
- Reg. 3(2)
Parties
- Pantomath Stock Brokers Pvt. Ltd.
Holding
The Adjudicating Officer held that Pantomath Stock Brokers Pvt. Ltd. violated Section 23D of SCRA read with SEBI circulars dated November 18, 1993 and September 26, 2016 by mis-utilizing credit balance clients' funds for debit balance clients' settlement obligations, pledging clients' securities in excess of indebtedness and using them to cover MTM losses, failing to settle inactive clients' funds quarterly, and reporting incorrect data to stock exchanges.
Full text
Adjudication Order in respect of Pantomath Stock Brokers Pvt. Ltd. Page 2 of 34 c. Pledging of clients’ securities d. Reporting of data towards monitoring clients’ funds e. KYC and account opening process, related compliance. Etc. f. Client registration processes g. Financial statement analysis h. Other general observations & NISM certification
Adjudication Order in respect of Pantomath Stock Brokers Pvt. Ltd. Page 3 of 34 and also under Section 23I of the SCRA read with Rule 4 of Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties) Rules, 2005 (hereinafter referred to as ‘Adjudication Rules 2005’), to inquire into and adjudge under the provisions of Section 15HB of the SEBI Act and also under Section 23D of the SCRA, the aforementioned alleged violations of the provisions of the law by the Noticee. Thereafter, pursuant to the transfer of Dr. Anitha Anoop to another department, the undersigned has been appointed as the Adjudicating Officer in the matter, vide communique dated November 3, 2020.
Adjudication Order in respect of Pantomath Stock Brokers Pvt. Ltd. Page 4 of 34 reiterated its submissions made vide letter February 21, 2021. Further, the Noticee also made additional submissions in the matter, vide letters dated June 15, 2021, September 29, 2021, and vide email dated March 09, 2022.
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Source: SecMarx — sebi:ORDER/SBM/KL/2022-23/17216. 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.