sebi:Order/BM/DS/2023-24/30047
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Facts / Headnote
Noticee found in violation of Clause 3.2 of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 (and other alleged violations addressed in the order)
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 28A
Regulations
- Reg. 6
- Reg. 9(f)
- Reg. 58
Parties
- Eastern Financiers Limited
Holding
The Noticee, Eastern Financiers Limited, was found to have violated Clause 3.2 of the Annexure to SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 by incorrectly reporting figures of bank balances, free collateral, and own securities deposited as collateral with the Clearing Corporation to the Stock Exchanges.
Full text
Adjudication Order in the matter of Eastern Financiers Limited Page 2 of 36 corresponding provisions of Stock Brokers Regulations, 1992 and SEBI Circulars are given in the table below: Table 1 Sr. No. Alleged Violations (Summarized) Regulatory Provisions 1 Discrepancy in data pertaining to bank balance, free collateral deposited with Clearing Corporation (CC) and own securities deposited as collateral with CC. Clause 3.2 and Clause 6.1.1.j of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P /2016/95 dated September 26, 2016 2 Discrepancies in stock reconciliation Clause 2.3 of SEBI Circular MRD/DoP/SE/Cir-11/2008 dated April 17, 2008 3 Non reporting of bank account/ demat account Clause 2 of Annexure to SEBI circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 4 Non settlement of clients’ funds on quarterly / monthly basis Clause 5 of SEBI Circular SEBI/HO/ MIRSD/DOP/P/CIR/2021/577 dated June 16, 2021 5 Non-settlement of Inactive Client Funds Clause 5 of SEBI Circular SEBI/HO/ MIRSD/DOP/P/CIR/2021/577 dated June 16, 2021 6 Short collection of margin Clause 5 of SEBI Circular SEBI/HO/MRD2/DCAP/CIR/P/2020/127 dated July 20, 2020 read with Clause (iii) of Annexure of SEBI/HO/MRD2/DCAP/ CIR/P/2020/127 dated July 20, 2020
Adjudication Order in the matter of Eastern Financiers Limited Page 3 of 36 Sr. No. Alleged Violations (Summarized) Regulatory Provisions 7 Terminal being operated by a person, other than approved user Clause A(5) of Schedule II read with Regulation 9(f) of SEBI (Stock Brokers) Regulations, 1992 read with NSE circular NSE/MEM/3574 dated August 29, 2002 8 Mapping unique mobile numbers to more than one UCC without obtaining family declaration Clause 2.B.iv of SEBI Circular CIR/MIRSD/15/2011 dated August 02, 2011 Clause A(5) of Schedule II read with Regulation 9(f) of SEBI (Stock Brokers) Regulations, 1992 read with BSE Notice no. 20210401-53 dated April 01, 2021.
Adjudication Order in the matter of Eastern Financiers Limited Page 4 of 36 SHOW CAUSE NOTICE, REPLY OF THE NOTICEE AND HEARING
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Source: SecMarx — sebi:Order/BM/DS/2023-24/30047. 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.