sebi:Order/BM/DS/2022-23/18838-18845

SEBI · SEBI · 2020-04-24 · Barnali Mukherjee, Adjudicating Officer

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Facts / Headnote

Penalty imposed on Noticees 1, 7 and 8 for violations of PMS Regulations, KRA Regulations, and Portfolio Managers Regulations; allegations against Noticees 2, 3, 4, 5 and 6 not made out due to lack of material showing involvement in day-to-day affairs.

Provisions invoked

• s. 15
• s. 15H
• s. 27
• s. 15J
• s. 28A
• s. 15C

Regulations

• Reg. 13
• Reg. 8
• Reg. 15
• Reg. 9A(1)(c)
• Reg. 15(6)
• Reg. 16(a)
• Reg. 16(8)
• Reg. 17(1)(e)
• Reg. 16(7)
• Reg. 17
• Reg. 6
• Reg. 6(c)

Parties

• Landmark Capital Advisors Private Limited (Noticee 1)
• Mr. Deba Prasad Roy (Noticee 2)
• Mr. C Parthasarathy (Noticee 3)
• Mr. Milind Korde Surendra (Noticee 4)
• Mr. P B Ramapriyan (Noticee 5)
• Mr. Raj Bhardwaj Narain (Noticee 6)
• Mr. Ashish Kumar Joshi (Noticee 7)
• Mr. Kedar Deshpande (Noticee 8)

Holding

PMS-Landmark (Noticee 1) was found to have violated Regulations 15(1A), 16(8), 17(1)(e), 13 read with Code of Conduct clauses, Regulation 9A(1)(c) read with 15(6) of PMS Regulations, and Regulations 16(a) and (d) of KRA Regulations, 2011. Penalties of ₹2,00,000 under Section 15C and ₹5,00,000 under Section 15HB of the SEBI Act, 1992 were imposed jointly and severally on Noticees 1, 7 and 8, while allegations against Noticees 2, 3, 4, 5 and 6 were dropped for lack of evidence of involvement in day-to-day affairs.

Full text

Adjudication Order in the matter of Landmark Capital Advisors Private Limited Page 2 of 55 29, 2020. The period covered in inspection was from April 01, 2018 to March 31, 2019 (hereinafter referred to as “inspection period”). Noticee 1 is registered as portfolio manager with SEBI registration no. INP000005315. Mr. Deba Prasad Roy (hereinafter referred to as “Noticee 2”), Mr. C Parthasarathy (hereinafter referred to as “Noticee 3”), Mr. Milind Korde Surendra (hereinafter referred to as “Noticee 4”), Mr. P B Ramapriyan (hereinafter referred to as “Noticee 5”), Mr. Raj Bhardwaj Narain (hereinafter referred to as “Noticee 6”), Mr. Ashish Kumar Joshi (hereinafter referred to as “Noticee 7”) and Mr. Kedar Deshpande (hereinafter referred to as “Noticee 8”) were directors of the Company at the time of occurrence of the alleged violations (Noticees 1 to 8 are hereinafter collectively referred to as “Noticees”).

Adjudication Order in the matter of Landmark Capital Advisors Private Limited Page 3 of 55 Sr. No. Alleged Violations Regulatory Provisions 2 Holding clients’ securities in its own name Regulation 16(8) of Portfolio Managers Regulations, 1993. 3 Non-maintenance of records in support of investment transactions Regulation 17(1)(e) of Portfolio Managers Regulations, 1993. 4 Failure to deploy funds received from clients in reasonable time Regulation 13 read with Clause 2 of Code of Conduct as specified in Schedule III of Portfolio Managers Regulations, 1993 5 Provisions allowing outsourcing of core activities Regulation 13 read with Clause 3 of Code of Conduct and clause 1 and 5 of SEBI CIRCULAR CIR/MIRSD/24/2011 dated December 15, 2011 as specified in Schedule III of Portfolio Managers Regulations, 1993 6 Failure to maintain arm’s length relationship between handling activities as a portfolio manager and manager of AIF Regulation 13 read with Clause 1 and 12(a) of Schedule III - Code of Conduct of Portfolio Managers Regulations, 1993 read with clause 3 of SEBI RPM Circular No.1 (2002-20003) dated September 17, 2002 7 Outsourcing of activity of carrying out KYC requirements and failure to obtain registration with CKYC & KRA Regulation 16(a) and (d) of KRA Regulations, 2011

Adjudication Order in the matter of Landmark Capital Advisors Private Limited Page 4 of 55 Sr. No. Alleged Violations Regulatory Provisions 8 Failure to redress investor grievances within 30 days of receipt of grievances Regulation 9A(1)(c) read with 15(6) of Portfolio Managers Regulations, 1993

Source: SecMarx — sebi:Order/BM/DS/2022-23/18838-18845. 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.