sebi:Order/AS/GD/2022-23/24212
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Facts / Headnote
Violations established; penalty imposed
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 12
- s. 15H
- s. 15J
- s. 12A
- s. 15F
- s. 28A
- s. 23I
- s. 23
- s. 23D
Regulations
- Reg. 6
- Reg. 9(f)
Parties
- Swastika Investmart Limited
Holding
The Adjudicating Officer held that Swastika Investmart Limited violated provisions relating to misuse of clients' funds, non-settlement of clients' accounts, mismatch in retention statements, incorrect reporting of margin to the exchange, discrepancies in mobile numbers data of clients, and incorrect submission of data to the exchange, and imposed a total penalty of Rs. 15,00,000 under Section 15HB of the SEBI Act, 1992 and Section 23D of the SC(R) Act, 1956.
Full text
Adjudication Order in the matter of Swastika Investmart Limited Page 2 of 40 SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016. B Non settlement of clients’ accounts Clause 8.1 of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 and clause 12 of Annexure- A of SEBI Circular SEBI/MIRSD/SE/Cir-19/2009 dated December 03, 2009 C Mismatch in retention statement Clause 12(e) of Annexure-A of SEBI Circular SEBI/MIRSD/SE/Cir-19/2009 dated December 03, 2009 and Annexure-1 to NSE Circular NSE/INSP/36889 February 02, 2018 read with Clause A(5) of the code of conduct, read with Regulation 9(f) of the SEBI (Stock Brokers) Regulations, 1992. D Incorrect reporting of margin to the exchange SEBI Circular CIR/DNPD/7/2011 dated August 10, 2011 E Discrepancies in Mobile numbers data of clients Clause 2(B) of SEBI Circular CIR/MIRSD/15/2011 dated August 02, 2011 F Incorrect submission of data to exchange Clause 6.1.1(j) of Annexure of SEBI Circula SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016
Adjudication Order in the matter of Swastika Investmart Limited Page 3 of 40 to have been committed by the Noticee. The said proceedings of appointment was communicated to the undersigned vide communique dated October 12, 2022.
Adjudication Order in the matter of Swastika Investmart Limited Page 4 of 40 5. The allegations levelled against the Noticee in the SCN are as under: a) Misuse of clients funds b) Non settlement of clients’ accounts c) Mismatch in retention statement d) Incorrect reporting of margin to the exchange e) Discrepancies in Mobile numbers data of clients f) Incorrect submission of data to exchange
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