sebi:Order/SBM/KL/2020-21/11262

SEBI · SEBI · 2020-07-17 · Suresh B Menon, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Violation found; penalty of Rs. 10,00,000 imposed

Provisions invoked

Regulations relied on

Parties

Holding

The Adjudicating Officer held Swastika Investmart Limited violated the provisions of law mentioned in para 6 (A to G) and imposed a penalty of Rs. 10,00,000 under Section 23D of SCRA and Section 15HB of SEBI Act.

Full text

Adjudication Order in respect of Swastika Investmart Limited. Page 2 of 27 (Certification of Associated Persons in the Securities Markets) Regulations, 2007, (hereinafter referred to as the ‘CPS Regulations’), and also various Circulars issued by SEBI.

Adjudication Order in respect of Swastika Investmart Limited. Page 3 of 27 hearing and reiterated its submissions made in its email dated October 16, 2020. Further, the Noticee also made additional submissions in the matter, vide email dated December 21, 2020.

Adjudication Order in respect of Swastika Investmart Limited. Page 4 of 27 6. I will now proceed to deal with the aforementioned allegations leveled against the Noticee in the SCN, the submissions made by the Noticee in this regard and record my observations /findings as under:- A: Allegation w.r.t mis-utilization of clients’ funds Allegation: i. During the course of inspection, analysis was done w.r.t the total available funds of the Noticee i.e. cash and cash equivalents with itself and with the clearing corporation/clearing member. Table-1 Sl. No. Date Total fund balance available in all client bank accounts, including the settlement account, maintained by the stock broker across stock exchanges (Rs.). Collateral deposited with clearing corporation/ clearing member in form of Cash and Cash Equivalents (Fixed deposit (FD), Bank guarantee (BG), etc.) across all Stock Exchanges. Only funded portion of the BG, i. e. the amount deposited by stock broker with the bank to obtain the BG, shall be

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Source: SecMarx — sebi:Order/SBM/KL/2020-21/11262. 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.