sebi:Order/GR/KG/2020-21/9396
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Facts / Headnote
Penalty imposed on the Noticee for violations of SEBI circulars
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 28A
- s. 19H
- s. 19G
- s. 19I
Regulations
- Reg. 58
Parties
- Shriram Insight Share Brokers Limited
Holding
The Noticee was held liable for violating various clauses of SEBI Circular dated September 26, 2016, SEBI Circular dated December 3, 2009, and SEBI Circular dated April 13, 2012, and a penalty of Rs. 4,00,000 under Section 15HB of the SEBI Act and Rs. 1,00,000 under Section 19G of the Depositories Act was imposed, aggregating to Rs. 5,00,000.
Full text
Adjudication Order in respect of Shriram Insight Share Brokers Limited Page 2 of 30 brought out certain deficiencies in the functioning of the Noticee as a stock broker and depository participant.
Adjudication Order in respect of Shriram Insight Share Brokers Limited Page 3 of 30 iii. Verification of Monthly upload of client funds & securities balances as on 28-Mar- 2018 was undertaken. It was prima facie observed that Noticee had not reported fund balances as reflected in the Fund Trail balances of 1057 clients and securities balances as reflected in the back office holding of 199 clients. Further analysis of Monthly upload of client funds & securities balances as on 31-July-2018 was undertaken and it was also prima facie observed that Noticee had not reported fund balances of 1050 clients and securities balances of 196 clients. Such alleged conduct of the Noticee was in violation of Clause 7 of Annexure to SEBI circular SEBI /HO /MIRSD /MIRSD2 /CIR /P/2016/95 dated September 26, 2016.
Adjudication Order in respect of Shriram Insight Share Brokers Limited Page 4 of 30 2020) to adjudicate upon the violations committed by the Noticee prima facie observed during the inspection under Rule 4 of the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 read with section 15I of the SEBI Act, 1992 and Rule 4 of the Depositories (Procedure for Holding Inquiry and Imposing Penalties by Adjudication Officer) Rules 2005, read with section 19H of the Depositories Act, 1996.
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Source: SecMarx — sebi:Order/GR/KG/2020-21/9396. 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.