sebi:Order/BM/JR/2024-25/30577
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Facts / Headnote
Penalty of Rs.4,00,000 imposed under section 15HB of the SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 23I
- s. 23J
- s. 23H
- s. 23
- s. 2(6)
Regulations
- Reg. 6
- Reg. 9
- Reg. 21(1)
- Reg. 24
- Reg. 26
- Reg. 2(1)(b)
Parties
- Indian Finance Guaranty Limited
Holding
The Noticee was found to have violated Rule 8(3)(f) of the SCRR and investor-grievance norms under the Brokers Regulations and circulars, and a penalty of Rs.4,00,000 under section 15HB of the SEBI Act was imposed.
Full text
Adjudication Order in the matter of Indian Finance Guaranty Limited Page 2 of 26 (“Brokers Regulations”) and various circulars issued therein. The extracts of the violation alleged to have been committed by the Noticee and corresponding provision of the securities law are given in the tabulation below:
Adjudication Order in the matter of Indian Finance Guaranty Limited Page 3 of 26 provisions of section 23H of SCRA and section 15HB of the SEBI Act, the alleged violations of SCRR, Brokers Regulations and various circulars issued therein, alleged to have been committed by the Noticee.
Adjudication Order in the matter of Indian Finance Guaranty Limited Page 4 of 26 It is respectfully denied that we have engaged as a principal in a business other than that of securities involving personal financial liability. With regard to the allegation that the Noticee had taken unsecured loans from multiple entities amounting to Rs. 7.81 Crores, it is respectfully submitted that by taking unsecured loan, the Noticee did not violate any provisions of law governing securities market as it is permissible under the law. It is submitted that the Noticee has availed unsecured loan facilities from the entities only for the purpose of running our securities business smoothly and it is duly permitted by SEBI. The Noticee would like to bring your kind attention to SEBI circular bearing no. SMD/POLICY/CIR-6 dated May 7, 1997. The operative part of the said SEBI circular as under:
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Source: SecMarx — sebi:Order/BM/JR/2024-25/30577. 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.