sebi:Order/MC/RM/2022-23/15975
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Facts / Headnote
Allegation of violation of para 4(a) of SEBI Master Circular SEBI/MIRSD/Master Cir-04/2010 dated March 17, 2010 r/w para 2.5 of Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 and para 2 of Circular SMD/SED/CIR/93/23321 dated November 18, 1993 established against the Noticee; penalty imposed under Section 15HB of SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 13
- Reg. 58
Parties
- National Stock Exchange of India Limited (NSE)
Holding
The Adjudicating Officer found that NSE violated para 4(a) of the SEBI Master Circular dated March 17, 2010 read with para 2.5 of the SEBI Circular dated September 26, 2016 and para 2 of the Circular dated November 18, 1993 in connection with the Karvy Stock Broking Limited (KSBL) matter, and imposed a monetary penalty under Section 15HB of the SEBI Act.
Full text
Adjudication Order in respect of NSE in the matter of Karvy Stock Broking Limited Page 2 of 89 'Adjudication Rules'), vide Order dated December 18, 2020 to inquire into and adjudge under Section 15HB of SEBI Act, the aforesaid alleged violations against the Noticee. Subsequently, vide order dated June 18, 2021, the undersigned was appointed as Adjudicating Officer and the appointment was communicated vide communique dated June 21, 2021.
Adjudication Order in respect of NSE in the matter of Karvy Stock Broking Limited Page 3 of 89 a) A factual self-contained note highlighting roles & responsibilities of exchange towards implementation of various circulars issued by SEBI as indicated in the said orders vis-a vis relating to Stock brokers including the mechanism for monitoring of compliance. b) A chronology of events pertaining to correspondences/ inspections/ compliances/ actions and follow up actions pursuant to inspection or otherwise as were undertaken in the aforesaid matter of KSBL. c) Details of actions so far taken commencing from the date on which such misappropriation/misuse on the part of KSBL came to their notice.
Adjudication Order in respect of NSE in the matter of Karvy Stock Broking Limited Page 4 of 89 previously by NSE and Depositories, the default may have perhaps come to light much earlier enabling SEBI to take appropriate measures.
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Source: SecMarx — sebi:Order/MC/RM/2022-23/15975. 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.