sebi:Order/BM/JR/2023-24/30086
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Facts / Headnote
Violations established; penalty of Rs. 2,00,000 imposed under Section 15HB
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Parties
- Marfatia Stock Broking Private Limited
Holding
The Noticee violated the monthly/quarterly settlement and enhanced supervision reporting requirements, and a penalty of Rs. 2,00,000 under Section 15HB of the SEBI Act was imposed on Marfatia Stock Broking Private Limited.
Full text
Adjudication Order in the matter of Marfatia Stock Broking Private Limited Page 2 of 15 S. No. Alleged violations Regulatory provisions 1 Monthly/ Quarterly settlement of funds and securities
Adjudication Order in the matter of Marfatia Stock Broking Private Limited Page 3 of 15 SEBI (Procedure for Holding Inquiry and Imposing Penalties ) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under the provisions of section 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”), the alleged violations of SEBI Circulars, NSE circulars and notice of BSE, alleged to have been committed by the Noticee.
Adjudication Order in the matter of Marfatia Stock Broking Private Limited Page 4 of 15 Your good self will appreciate that non settled amount comes to only 0.0704% to 0.0002 % during the said period, which is itself shows that there is no intention of non-settlement of such miscellaneous credit balance of clients. Also your good self will find that after communicating with our inactive client, bank details are duly updated and credit balances are duly in decreasing value for each month end. The instances observed during inspection period for quarterly non settlement of client fund was primarily due to a change in client bank details, which is procedural lapses and does not consider as principal violation. Hence we have followed the relevant circulars issued by exchange and SEBI regarding settlement of client funds and securities from time to time.
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Source: SecMarx — sebi:Order/BM/JR/2023-24/30086. 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.