sebi:Order/MC/RM/2022-23/15977
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Facts / Headnote
Noticee held liable for violations; penalty imposed under Section 15HB of SEBI Act, 1992
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15I(2)
Parties
- BSE Limited (Bombay Stock Exchange)
Holding
BSE Limited was found to have violated (i) para 4(a) of the 2010 Master Circular read with para 2 of the 1993 Circular, (ii) para 2.3 read with 1.1 and 1.2 of the annexure to the 2016 Enhanced Supervision Circular, and (iii) para 5 read with para 8.1 and para 2 of the Early Warning Mechanism Circular dated December 17, 2018, and was held liable for monetary penalty under Section 15HB of the SEBI Act, 1992.
Full text
Adjudication Order in respect of BSE Limited in the matter of Karvy Stock Broking Limited Page 2 of 64 vide order dated December 18, 2020 to inquire into and adjudge under section 15HB of the SEBI Act, the aforesaid alleged violations against the Noticees. Subsequently, vide order dated June 18, 2021, the undersigned was appointed as Adjudicating Officer (hereinafter referred to as “AO”) and the appointment was communicated vide communique dated June 21, 2021.
Adjudication Order in respect of BSE Limited in the matter of Karvy Stock Broking Limited Page 3 of 64 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 BSE Limited in the matter of Karvy Stock Broking Limited Page 4 of 64 sample basis and no adverse observations pertaining to mis-match of securities was observed. Further, no correspondence between BSE and the depositories (NSDL and CDSL) for client securities reconciliation is available.
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Source: SecMarx — sebi:Order/MC/RM/2022-23/15977. 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.