sebi:Order/AN/AK/2024-25/31093

SEBI · SEBI · 2018-03-22 · Amar Navlani, Adjudicating Officer

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Facts / Headnote

Violations held established; Noticee held liable for penalty under Section 15HB of SEBI Act and Section 23H of SCR Act

Provisions invoked

• s. 11B
• s. 11
• s. 15
• s. 19
• s. 12A
• s. 15H
• s. 15I
• s. 15J
• s. 15F
• s. 28A
• s. 23I
• s. 23J
• s. 23
• s. 23H

Regulations

• Reg. 6
• Reg. 9(f)

Parties

• Motisons Commodities Private Limited

Holding

The Adjudicating Officer held that Motisons Commodities Private Limited violated Clause III of SEBI Circular dated March 22, 2018, Clause A(5) of Schedule II read with Regulation 9(f) of SEBI (Stock Brokers) Regulations, 1992, and Rule 8(3)(f) of SCR Rules, 1957, attracting monetary penalty under Section 15HB of SEBI Act and Section 23H of SCR Act.

Full text

Adjudication Order in the matter of Motisons Commodities Private Limited Page 2 of 24 3. Based on the analysis of replies received and examination in the matter by SEBI, briefly stated, it was inter alia observed by SEBI that Noticee had allegedly violated various provisions of Securities Contract (Regulation) Rules, 1957 (“SCR Rules/ SCR Rules, 1957”), Securities and Exchange Board of India (Stock Brokers) Regulations, 1992 (“SEBI Stock Broker Regulations” / “SEBI Stock Broker Regulations, 1992”), and circulars issued by SEBI viz., 3.1. Rule 8(3)(f) of Securities Contract (Regulation) Rules, 1957 (hereinafter referred as the ‘SCR Rules’) 3.2. Clause III of SEBI circular no. SEBI/ HO/MIRSD/DoP1/CIR/2018/54 dated March 22,2018 3.3. Clause A(5) of Schedule II read with Regulation 9(f) of SEBI (Stock Brokers) Regulations, 1992, Explanation 1 to Schedule VI of SEBI (Stock Brokers) Regulations, 1992 read with NCDEX Circular NCDEX/ COMPLIANCE16/2016/239 dated September 27, 2016 (Clause 6.1.1 (j) of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016).

Adjudication Order in the matter of Motisons Commodities Private Limited Page 3 of 24 3 of the Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties) Rules, 2005 (“SCR Rules, 2005”), the Competent Authority appointed the undersigned as Adjudicating Officer vide order dated January 03, 2024 to inquire into and adjudge under Section 15HB of the SEBI Act, and Section 23H of the SCR Act, for the aforesaid alleged violations by the Noticee. The said proceedings of appointment were communicated to the undersigned vide Communique dated January 08, 2024.

Adjudication Order in the matter of Motisons Commodities Private Limited Page 4 of 24 proof of order placed by client UCC- SMM04 as mandated by SEBI through SEBI circular no. SEBI/HO/MIRSD/DoP1/CIR/2018/54 dated March 22,2018. 4.1.4. In view of the above, out of 20 trades taken as sample, the broker has not maintained the sufficient order placement record for 17 trades. 4.1.5. The Noticee in its reply dated December 22, 2022 to the findings of Inspection report submitted that, we have provided you 3 CTCL ids on 02.12.22 by mail, which are the CTCL ID related to all MS11 trades. w.r.t. 10 orders belonging to client code MS11 where is mismatch in Trade file provided by you and Trade file provided by Exchange. We are providing trade files for the require dates reason being all 10 trades belongs the above 3 CTCL id’s only. As of now we are not maintaining order book. But assure you we will comply with the same. 4.1.6. SEBI in this regard observed that, with respect to, 10 trades belonging to client code MS11, Member has submitted the terminal IDs of dealers from where order have been placed and they are matching with terminal IDs as per trade data file. Thus, Member’s reply in this regard is acceptable. However, with respect to, 7 trades belonging to UCC- SMM04, Member has replied that they are not maintaining order book currently. Thus, Member has accepted the violation. In view of the above, it is alleged that the Noticee had violated the following provisions: Clause III of SEB

Source: SecMarx — sebi:Order/AN/AK/2024-25/31093. 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.