sebi:Order/MC/VS/2020-21/11203
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee found to have violated Clause 12 of Annexure to SEBI Circular SEBI/MIRSD/SE/Cir-19/2009 dated 03.12.2009 and Clause 8.1 of Annexure to SEBI Circular SEBI/HO/MIRSD/MIRSS2/CIR/P/2016/95 dated 26.09.2016 (non-settlement of client accounts); penalty determination under consideration
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 23J
- s. 23
- s. 23D
Parties
- Kunvarji Finstock Pvt. Ltd.
Holding
The Noticee violated Clause 12 of Annexure to SEBI Circular dated 03.12.2009 and Clause 8.1 of Annexure to SEBI Circular dated 26.09.2016 relating to non-settlement of client accounts, as admitted in 31 instances across 6 quarters out of an active client base of approximately 14,000 clients.
Full text
Adjudication Order in respect of Kunvarji Finstock Pvt. Ltd.in the matter of Kunvarji Finstock Pvt. Ltd. Page 2 of 99 APPOINTMENT OF ADJUDICATING OFFICER
Adjudication Order in respect of Kunvarji Finstock Pvt. Ltd.in the matter of Kunvarji Finstock Pvt. Ltd. Page 3 of 99 7. The findings/observations made during the course of inspection were communicated to the Noticee by SEBI vide letter dated March 25, 2019 and are given below:
Adjudication Order in respect of Kunvarji Finstock Pvt. Ltd.in the matter of Kunvarji Finstock Pvt. Ltd. Page 4 of 99 it was verified whether funds raised by pledging securities were used for the respective clients’ obligations.
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Source: SecMarx — sebi:Order/MC/VS/2020-21/11203. 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.