sebi:Order/AS/AK/2022-23/21990-21991
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Facts / Headnote
Ex-parte adjudication order finding Noticee 1 in violation of SEBI Act, SCRA and SEBI Circulars; penalty quantum not stated in the extracted pages
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 12
- s. 15H
- s. 15J
- s. 12A
- s. 15F
- s. 28A
- s. 23J
- s. 23
- s. 23D
Regulations
- Reg. 6
- Reg. 9(f)
- Reg. 3
- Reg. 9
- Reg. 58
Parties
- First Future and Stocks Private Limited
- Chennai Commodities
Holding
The Noticees were proceeded against ex-parte for alleged violations of SEBI Act, SCRA and SEBI Circulars relating to handling of client funds/securities, settlement of client funds, KYC, email/mobile verification, certification of associated persons and networth misstatement. Noticee 1 was found non-compliant during the inspection period, including violation of SEBI Circular CIR/MIRSD/3/2014 dated August 28, 2014.
Full text
Page 2 of 69 Adjudication Order in the matter of First Future and Stocks Private Limited and Chennai Commodities Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act), Securities Contracts (Regulations) Act, 1956 (hereinafter referred to as ‘SCRA ’) and SEBI Circulars. The inspection was conducted during December 14, 2021 to December 18, 2021 and the period covered under inspection was from April 2019 to September 2020 (hereinafter referred to as ‘Inspection period’). The scope of the inspection was to, interalia, verify whether the Noticee 1 and Noticee 2 had complied with the Regulations and Circulars issued in respect of the Broking activities such as Handling of clients’ own funds and securities, Settlement of Clients funds and securities, Client related issues, Financial statement analysis etc. The observations made during the course of inspection were recorded as ‘Inspection report’ and
Page 3 of 69 Adjudication Order in the matter of First Future and Stocks Private Limited and Chennai Commodities Noticees, as deemed fit, in terms of rule 5 of the SEBI Adjudication Rules and rule 5 of the SCR Adjudication Rules 2005 and under section 15HB of the SEBI Act, section 23D of the SCRA for the alleged violations done by the Noticees. SHOW CAUSE NOTICE, REPLY AND HEARING
Page 4 of 69 Adjudication Order in the matter of First Future and Stocks Private Limited and Chennai Commodities to the SCN/Hearing notice and also failed to appear for the scheduled hearing.
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Source: SecMarx — sebi:Order/AS/AK/2022-23/21990-21991. 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.