sebi:Order/AK/VP/2022-23/22991
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Facts / Headnote
Penalties imposed on the Noticee for violations of SEBI circulars, Brokers Regulations, and Code of Conduct
Provisions invoked
- s. 15A
- s. 15
- s. 11B
- s. 12
- s. 11
- s. 15H
- s. 15J
- s. 12A
- s. 23J
- s. 23
- s. 23D
Regulations
- Reg. 17
- Reg. 18
Parties
- Hardik Multi-Com Broking Private Limited
Holding
The Noticee was found to have violated Clause 1 of SEBI Circular dated November 18, 1993 and Clause 3 of Annexure of SEBI Circular dated September 26, 2016 (misuse of clients' funds), Clause III of SEBI Circular dated March 22, 2018 (failure to maintain client order evidence), and Regulation 18 of Brokers Regulations and Clause A(5) of Code of Conduct (failure to maintain order logs). A penalty of Rs. 2,00,000 was imposed under Section 23D of SCRA for the first violation, with NIL penalties under Section 15HB and Section 15A(c) of SEBI Act for the other violations.
Full text
Adjudication Order in the matter of Hardik Multi-Com Broking Private Limited Page 2 of 23 2. The inspection team observed that the Noticee has, prima facie, violated following provisions during the inspection period:
Adjudication Order in the matter of Hardik Multi-Com Broking Private Limited Page 3 of 23 SHOW CAUSE NOTICE, REPLY AND HEARING
Adjudication Order in the matter of Hardik Multi-Com Broking Private Limited Page 4 of 23 Noticee, vide letter dated November 30, 2022, submitted its reply to the SCN and also sought inspection of documents. Since the Noticee failed to provide relevance of the documents of which inspection was sought, the same was denied and the Noticee was granted another opportunity of personal hearing on December 30, 2022. The Noticee gave further submissions, vide letter dated December 30, 2022. The authorized representative of the Noticee appeared on the scheduled date for hearing and reiterated the submissions, made vide its aforementioned letters.
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Source: SecMarx — sebi:Order/AK/VP/2022-23/22991. 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.