sebi:Order/AS/VC/2022-23/24875
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Facts / Headnote
Allegations of violations of Section 23D of SC(R) Act, 1956 and related SEBI circulars held established
Provisions invoked
- s. 15
- s. 11B
- s. 12
- s. 11
- s. 15H
- s. 15J
- s. 12A
- s. 15F
- s. 28A
- s. 23
- s. 23D
Regulations
- Reg. 3
- Reg. 8(1)
- Reg. 3(2)
Parties
- SIC Stocks & Services Private Limited
Holding
The Noticee was found to have violated Section 23D of the SC(R) Act, 1956 read with Clause 1 of Annexure of SEBI Circular SMD/SED/CIR/93/23321 and Clause 3 of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95, for mis-utilisation of clients' funds. The Noticee was also found to have failed to comply with quarterly settlement obligations and other SEBI circular requirements.
Full text
Adjudication Order in the matter of SIC Stocks & Services Private Limited Page 2 of 59 Noticee had submitted its comments / explanations on the aforesaid observations of the inspection vide its letter June 10, 2022.
Adjudication Order in the matter of SIC Stocks & Services Private Limited Page 3 of 59 SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 E Non-segregation of Clients’ Fund Section 23D of SC(R) Act, 1956 read with Clause 1 & 2 of Annexure of SEBI Circular SMD/SED/CIR/93/23321 dated November 18, 1993; Clause 2.4.2 of Annexure of SEBI Circular No. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 F Not maintained proper nomenclature of Bank accounts maintained by the Noticee Clause 1.2 of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 read with Clause 6.1.1. (f) of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 G Incorrect reporting of data under Risk Based Supervision Clause 6.1.1.e read with Clause 6.1.1 j of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 H Non-reconciliation of securities Clause 6.1.1 j of Annexure to SEBI circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 I Incorrect margin reporting SEBI Circular CIR/DNPD/7/2011 dated August 10, 2011 read with Clause 6.1.1 (j) of Annexure to SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 J Flaws in client registration process SEBI Circular nos. CIR/MIRSD/16/2011 dated August 22, 2011, MIRSD/Cir-26/2011dated December 23, 2011 read with SEBI Circular No. MIRSD/ SE /Cir-19/2009 dated December 03, 2009 K Undue funding of debit balance clients Clause
Adjudication Order in the matter of SIC Stocks & Services Private Limited Page 4 of 59 September 26, 2016 read with Clause 2(d) of SEBI circular CIR/HO/MIRSD/MIRSD2/CIR/P/2017/64 dated June 22, 2017 L Mismatch in details of Email IDs and Mobile numbers Clause 2(B) of SEBI Circular CIR/MIRSD/15/2011 dated Auegust 02, 2011 M Not maintained proper client order placement records and call recordings Clause III of SEBI Circular CIR/HO/MIRSD/MIRSD2/CIR/P/2017/108 dated September 26, 2017 N Non production of valid NISM certifications Regulation 3(2) of SEBI (Certification of Associated Persons in the Securities Markets) Regulations,
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