sebi:Order/MC/VS/2021-22/11596
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Facts / Headnote
Allegations not established; no penalty imposed; proceedings disposed without consideration of penalty
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 16
- s. 15I
Regulations
- Reg. 20
- Reg. 20A
- Reg. 201
Parties
- Angel Broking Ltd.
Holding
The Adjudicating Officer held that violation of Clause 19 of the Code of Conduct read with Regulation 20AA of the DP Regulations by Angel Broking Ltd. in respect of 26 imposter demat/trading accounts was not established, and therefore no monetary penalty under Section 15HB of the SEBI Act was imposable.
Full text
Adjudication Order in respect of in the matter of Angel Broking Ltd. Page 2 of 28 APPOINTMENT OF ADJUDICATING OFFICER 2. Shri Prasad Jagdale was appointed as Adjudicating Officer vide order dated December 22, 2014, to inquire into, and adjudge the aforesaid alleged violations under Section 15HB of the SEBI Act. Pursuant to transfer of Shri Prasad Jagdale, Shri Sahil Malik was appointed as Adjudicating Officer vide order dated May 18,
Adjudication Order in respect of in the matter of Angel Broking Ltd. Page 3 of 28 7. A special purpose inspection was conducted by SEBI on May 08, 2014, period of inspection being 2008 to 2013. The scope of the said inspection was to examine the systems put in place by the Noticee and compliance thereof regarding the provisions/ circulars / guidelines with respect to account opening forms (“AoF”)/ Know Your Client (“KYC”). The inspection findings were based on the analysis of 26 AoF/KYC and other records.
Adjudication Order in respect of in the matter of Angel Broking Ltd. Page 4 of 28 2012). Accordingly, account opening documents of these 26 clients were verified and it was found that they are imposters with assumed names and fake identities. The Noticee observed that some of these clients had opened accounts in different names with different addresses but had used same or similar looking photographs through its different branches at different point of time. As part of due diligence the Noticee had frozen all these 26 accounts and confirmed that it had started maintaining copies of the share certificates given for dematerialization by all its clients, since May 2013.
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Source: SecMarx — sebi:Order/MC/VS/2021-22/11596. 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.