sebi:Order/BM/DS/2024-25/30530
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Facts / Headnote
Violations of Clause 3 and Clause 3.2 of Annexure to SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 established; penalty of ₹2,00,000 imposed under Section 15A(b) of SEBI Act, 1992. Allegations under Clause 1 of the same circular, Rule 8(3)(f) of SCR Rules 1957, Clause 3 of SEBI Circular SEBI/MIRSD/Cir-06/2004, and Clauses 36, 41, 42 of SEBI Circular SEBI/HO/MIRSD/CIR/PB/2018/147 not established.
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 28A
- s. 23J
- s. 23
- s. 23H
- s. 194A
Regulations
- Reg. 15(1)
Parties
- Phillip Capital (India) Private Limited
Holding
The Noticee was found to have violated Clause 3 and Clause 3.2 of the Annexure to SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 by submitting incorrect weekly enhanced supervision data and incorrect bank balance/C&CE reporting to the exchanges, and a penalty of ₹2,00,000 was imposed under Section 15A(b) of the SEBI Act, 1992. All other alleged violations (bank account nomenclature, Rule 8(3)(f) non-adherence, improper dealing, and cyber security clauses) were not established.
Full text
Adjudication Order in the matter of Phillip Capital (India) Private Limited Page 2 of 42 to as “SCR Rules, 1957”) and applicable SEBI Circulars. The summary of violations alleged to have been committed by the Noticee and the corresponding provisions of SCR Rules, 1957 and SEBI Circulars are given in the table below: Table 1 Sr. No. Alleged Violations (Summarized) Regulatory Provisions 1 Nomenclature of bank accounts not in prescribed format Clause 1 of Annexure to SEBI Circular No. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 2 Incorrect reporting of enhanced supervision data (weekly) (NSE) Clause 3 of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 3 Incorrect reporting of data regarding bank balance and cash and cash equivalent balances Clause 3.2 of Annexure to SEBI Circular No. SEBI/HO/MIRSD/MIRSD2/CIR/P/ 2016/95 dated September 26, 2016 4 Non adherence to the rules of membership Rule 8(3)(f) of SCR Rules, 1957 5 Improper dealing Clause 3 of SEBI Circular SEBI/ MIRSD//Cir-06/2004 dated January 13, 2004 6 Cyber security and cyber resilience Clause 36, 41 and 42 of Annexure 1 to the SEBI Circular SEBI/HO/MIRSD/CIR/PB /2018/147 dated December 03, 2018
Adjudication Order in the matter of Phillip Capital (India) Private Limited Page 3 of 42 (Regulation) Act, 1956 (hereinafter referred to as “SC(R) Act, 1956”) for the alleged violations of the relevant provisions as stated above.
Adjudication Order in the matter of Phillip Capital (India) Private Limited Page 4 of 42 7.1. Nomenclature of bank accounts not in prescribed format 7.1.1. Noticee has submitted that bank accounts are maintained with correct nomenclature with the Client account tagging. Further, it has taken letters from the banks to show that the nomenclature of the account was with the client tagging, which have been submitted in support of its
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Source: SecMarx — sebi:Order/BM/DS/2024-25/30530. 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.