sebi:Order/KS/AS/2021-22/11665
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Facts / Headnote
Penalty imposed on Noticee
Provisions invoked
- s. 12
- s. 28A
- s. 23
- s. 23J
- s. 23D
Regulations
- Reg. 7
Parties
- Dynamic Equities Pvt Ltd
Holding
The Noticee violated SEBI Circular No. SMD/SED/CIR/93/23321 dated November 18, 1993 by failing to segregate its own funds from clients' funds and by using clients' credit balances to meet settlement obligations of debit balance clients, and is liable for a monetary penalty of Rs 1,00,000 under Section 23D of the SCRA, 1956.
Full text
Adjudication order in the matter of Dynamic Equities Pvt Ltd Page 2 of 23 1956, the alleged violation of provisions of SEBI Circular no SMD/SED/CIR/93/23321 dated November 18, 1993, by the Noticee. Further, pursuant to transfer of Ms Sangeeta Rathod, the undersigned was appointed as AO in the matter, conveyed vide communique dated October 28, 2020.
Adjudication order in the matter of Dynamic Equities Pvt Ltd Page 3 of 23 account to clients’ account. OD noted that funds were moved from Noticee’s own account no (in short A/c No) 00140340002400 and A/c No 05430340000125 to client A/c No 00140340002410 and A/c No
Adjudication order in the matter of Dynamic Equities Pvt Ltd Page 4 of 23 7. Vide email dated December 02, 2020, Noticee was conveyed the communique dated October 28, 2020 regarding appointment of the undersigned as AO in the matter, and was granted time till December 09, 2020 to submit reply to the SCN. Further, Noticee was also granted opportunity of personal hearing on December 17, 2020 vide aforesaid email. Vide email dated December 08, 2020, Noticee requested for additional time for submitting reply to the SCN. Acceding to its request, vide email dated December 09, 2020, Noticee was granted time till December 18, 2020 to submit reply to the SCN, and was granted another opportunity of personal hearing on December 22, 2020. Vide email dated December 21, 2020, Noticee submitted reply to the SCN. The contentions made in the reply are given below in brief: ………. Our Pointwise reply is as under: Para No 3 of SEBI letter ………. Our Reply Out of the 5 sample dates, the inspecting authority observed that in 2 days the funds of clients having credit balance are being utilized for settlement obligations of clients having debit balance: Sr No Date Amount 1 21/04/2015 Rs 13.36 lacs 2 29/09/2016 Rs 14.57 lacs
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Source: SecMarx — sebi:Order/KS/AS/2021-22/11665. 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.