sebi:ORDER/SM/DD/2022-23/16586
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Facts / Headnote
Violations established under Section 23D of SCRA, Section 15A(b) of SEBI Act, and Section 15HB of SEBI Act; penalty quantum to be determined
Provisions invoked
- s. 15A
- s. 15
- s. 12
- s. 15H
- s. 15J
- s. 15F
- s. 28A
- s. 23J
- s. 23
- s. 23D
- s. 19G
Regulations
- Reg. 9(f)
- Reg. 9
Parties
- M/s. Sykes and Ray Equities (I) Ltd.
Holding
The Adjudicating Officer found that the Noticee violated Section 23D of SCRA (failure to segregate client and own securities), Clause A(5) of Regulation 9 of Broker Regulations read with NSE circulars (terminals not operated by registered users), and other alleged violations as set out in the SCN. The order addresses multiple issues including use of credit balance client funds, non-settlement of client accounts, KYC/UCC compliance, and terminal operation.
Full text
Adjudication Order in respect of M/s. Sykes and Ray Equities (I) Ltd. in the matter of M/s. Sykes and Ray Equities (I) Ltd. Page 2 of 39 clauses 3, 3.2 & 7 of Annexure to SEBI circular SEBI / HO/ MIRSD/ MIRSD2/CIR/P/2016/95 dated September 26, 2016 (herein after referred to as “Enhanced Supervision Circular”) 3.2. SEBI circular SEBI/MIRSD/SE/CIR-19/2009 dated December 03, 2009 (herein after referred to as“SEBI Circular dated December 03, 2009”) read with NSE circular NSE/INSP/24849 dated October 29, 2013 3.3. Annexure A to SEBI circular dated December 03, 2009 3.4. Clause B of SEBI circular CIR/MIRSD/15/2011 dated August 02, 2011 3.5. Clause 6 of SEBI circular CIR/MIRSD/66/2016 dated July 21, 2016 3.6. Clause 3 of SEBI circular MIRSD/CIR-5/2012 dated April 13, 2012 3.7. Clause A(5) of regulation 9 of SEBI (Stock Broker) Regulations, 1992( herein after referred to as “Broker Regulations/Stock Broker Regulations”) read with exchange circulars NSE/MEMB/3574 dated August 29, 2002, NSE/MEMB/3635 dated September 25, 2002 and NSE/MA/22732 dated February 13, 2013 3.8. Clause 1 of SEBI circular MIRSD/CIR-26/2011 dated December 23, 2011.
Adjudication Order in respect of M/s. Sykes and Ray Equities (I) Ltd. in the matter of M/s. Sykes and Ray Equities (I) Ltd. Page 3 of 39 Noticee under Section 23D of SCRA, Section 15A (b) of SEBI Act and Section 15HB of SEBI Act for the aforesaid violations alleged to have been committed by Noticee.
Adjudication Order in respect of M/s. Sykes and Ray Equities (I) Ltd. in the matter of M/s. Sykes and Ray Equities (I) Ltd. Page 4 of 39
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Source: SecMarx — sebi:ORDER/SM/DD/2022-23/16586. 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.