sebi:Order/BM/GN/2023-24/30053

SEBI · SEBI · 2023-12-07 · Barnali Mukherjee, Adjudicating Officer

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Facts / Headnote

Show cause notice disposed of without imposition of penalty

Provisions invoked

• s. 15H
• s. 15J

Regulations

• Reg. 3
• Reg. 199
• Reg. 8
• Reg. 3(1)
• Reg. 9A(1)(e)

Parties

• Beeline Broking Limited

Holding

The Noticee was found to have violated Regulation 3 of the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 read with the relevant SEBI notifications and Regulation 9A(1)(e) of the SEBI (Merchant Bankers) Regulations 1992, but no penalty was imposed under Section 15HB of the SEBI Act, 1992.

Full text

Adjudication Order in the matter of inspection of Beeline Broking Limited Page 2 of 12 SHOW CAUSE NOTICE, REPLY AND HEARING 5) Show Cause Notice (hereinafter being referred to as the “SCN”) dated December 07, 2023 was issued to Noticee in terms Rule 4(1) of Adjudication Rules to show cause as to why an inquiry should not be initiated against Noticee and why penalty, if any, should not be imposed upon Noticees under Section 15HB of SEBI Act for the alleged violations of Regulation 3 of the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 read with SEBI notification no. LAD-NRO/GN/2013-14/15/6319 dated August 02, 2013, SEBI notification no. LAD-NRO/GN/202-13/33/1103 dated March 11, 2013 and Regulation 9A(1)(e) of the SEBI (Merchant Bankers) Regulations 1992. 6) Following are allegations made against the Noticee in the SCN- a) During inspection it was observed that Mr. Nevil Rameshbhai Savjani {Key Managerial person (hereinafter referred to as KMP)} resigned on November 15, 2021. Mr. Nevil Rameshbhai Savjani’s NISM certification commenced from September 29, 2019 and expired on September 28, 2022. As his resignation date is November 15, 2021, so there is no NISM certification for a KMP from November 16, 2021 onwards. Vide reply dated June 30, 2023 to the inspection findings Noticee submitted that Mr. Nevil Savjani was having NISM Certificate which was effective from April 05, 2016 to April 04, 2019. Noticee accepted that NISM certificate of K

Adjudication Order in the matter of inspection of Beeline Broking Limited Page 3 of 12 d) During inspection it was also observed that Mr. Vanesh Pramod Panchal resigned on July 21, 2022 and his NISM certificate commenced from June 02, 2018 and expired on June 01, 2021. e) Therefore, it was alleged that NISM Series IIIA Certification obtained by Mr. Vanesh Panchal expired on June 01, 2021 and later on w.e.f. July 21, 2022, he resigned as Compliance Officer. f) In view of the above, it was alleged that Noticee was also non-compliant with SEBI notification no. LAD-NRO/GN/202-13/33/1103 dated March 11, 2013 read with Regulation 3 of SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 from June 02, 2021 to July 21, 2022 and Regulation 9A(1)(e) of the SEBI (Merchant Bankers) Regulations 1992. 7) The SCN was sent to Noticee through Speed Post AD and via digitally signed Email on December 13, 2023 and was duly served upon Noticee. Vide email dated December 27, 2023, Noticee sought an extension of 4 weeks for submitting its reply. Vide email dated December 28, 2023 the request of Noticee was acceded to and Noticee was requested to submit its reply on or before January 25, 2024. Vide email dated January 25, 2024, Noticee submitted its reply. 8) The Noticee’s reply is summarised below: a) Noticee submitted that Mr. Nevil Savjani (KMP) was already having experience of more than 10 years and particularly in the Merchant Banking field and in addition havi

Adjudication Order in the matter of inspection of Beeline Broking Limited Page 4 of 12 initiated prior to November 15, 2021 and therefore handled by the same KMP's of the Company. c) Further, Noticee submitted that compliance officer Mr. Pradip Sandhir has already obtained NISM series IIIA certification on May 23, 2023 i.e. one year of being designated as compliance officer on July 21, 2021. Mr. Vanesh Panchal was already having valid NISM Series IIIA certification upto June 01, 2021 and later upto July 21, 2022. 9) In the interest of natural justice, an opportunity of personal hearing was granted to Noticee on February 05, 2024 vide hearing notice dated January 25, 2024. The said hearing notice was sent to Noticee through SPAD and digitally signed email dated February 01, 2024 and was duly served upon Noticee. However, vide email dated February 05, 2024, Noticee sought adjournment of hearing for 15 days, the aforesaid request of adjournment was acceded to and vide email dated February 05, 2024, second opportunity of hearing was provided to Noticee on February 20, 2024. The Authorised Representative (ARs), appointed vide Noticee’s letter dated February 20, 2024, appeared for the hearing scheduled on February 20, 2024 through zoom platform and made submissions on the lines of written reply submitted by Noticee and sought time till February 23, 2024 for the submission of additional reply. Vide email dated February 23, 2024 Noticee has made the additional submissions, the same i

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