sebi:ORDER/SM/DD/2021-22/13382
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Facts / Headnote
Violations established against Noticee; penalty imposed (amount not specified in excerpt)
Provisions invoked
- s. 15
- s. 19
- s. 12
- s. 15H
- s. 15J
- s. 15F
- s. 28A
- s. 23J
- s. 23
- s. 19H
- s. 23D
- s. 19G
Regulations
- Reg. 58
Parties
- M/s. Beeline Broking Ltd.
Holding
The Adjudicating Officer found Noticee (M/s. Beeline Broking Ltd.) in violation of multiple SEBI and NSDL circulars, including pledging of client securities in excess of client obligations, routing money raised from pledging through Noticee's own bank account, mismatch of client email/mobile data in CFS vs UCC, and various account-opening and documentation deficiencies under NSDL circulars. The AO held that a penalty is warranted as a deterrent, though no quantifiable disproportionate gain or investor loss was established.
Full text
Adjudication Order in respect of M/s. Beeline Broking Ltd. in the matter of M/s. Beeline Broking Ltd. Page 2 of 45 is a trading member of BSE Ltd. (hereinafter referred to as ‘BSE’) and National Stock Exchange of India Ltd (hereinafter referred to as ‘NSE’). Further, Noticee is a DP of the NSDL.
Adjudication Order in respect of M/s. Beeline Broking Ltd. in the matter of M/s. Beeline Broking Ltd. Page 3 of 45 l) Clause 11 of NSDL Circular No. NSDL/Policy/2014/0092 dated August 25, 2015
Adjudication Order in respect of M/s. Beeline Broking Ltd. in the matter of M/s. Beeline Broking Ltd. Page 4 of 45 natural justice, an opportunity of personal hearing was granted to Noticee on March 02, 2021 vide hearing notice dated February 23, 2021. The said hearing notice was sent to Noticee through SPAD and through digitally signed email and was duly served upon Noticee. Noticee submitted its undated reply (received by SEBI on February 25, 2021) to the SCN. Vide email dated February 26, 2021. Noticee sought an extension of 15 days for the hearing, citing the reason of covid symptoms of one of the concerned persons. The request of Noticee was acceded to and vide hearing notice dated March 01, 2021, Noticee was granted final opportunity of hearing on March 16, 2021. The said hearing notice was sent to Noticee through SPAD and digitally signed email and served upon Noticee. Noticee availed the opportunity of hearing granted to it on March 16, 2021, through WebEx platform where Mr. Vanesh Panchal, Director of Noticee, attended the hearing and made submissions on the lines of written reply submitted by Noticee.
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Source: SecMarx — sebi:ORDER/SM/DD/2021-22/13382. 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.