sebi:Order/SV/VC/2024-25/30562

SEBI · SEBI · 2023-01-17 · Shashi Kumar Valsakumar, Adjudicating Officer

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Facts / Headnote

Partially in favour of Noticee; violations established on certain charges (Non-reporting of shortfall in collection of EOD margin, Passing of penalty to clients on short collection of upfront margins, Incorrect reporting of data under Enhanced supervision data (Weekly), Discrepancies in Margin Trading Funding, Non-compliance with Cyber-security requirements), while allegations on PMLA/AML provisions, incorrect reporting of brokerage income in RBS, and certain other charges not established. Penalty imposed under Section 15HB of SEBI Act, 1992.

Provisions invoked

Regulations

Parties

Holding

The Adjudicating Officer held that Ventura Securities Limited violated provisions relating to non-reporting of shortfall in collection of EOD margin, passing of penalty to clients on short collection of upfront margins, incorrect reporting of data under Enhanced supervision data (Weekly), discrepancies in Margin Trading Funding, and non-compliance with Cyber-security requirements, while allegations under PMLA/AML provisions and incorrect reporting of brokerage income in RBS were not established.

Full text

Adjudication Order in the matter of Ventura Securities Limited Page 2 of 47 2. The findings / observations made during the course of inspection were recorded as Inspection Report and the inspection findings / observations were communicated to the Noticee vide SEBI letter / e-mail dated January 17, 2023. Noticee had submitted its comments / explanations on the aforesaid findings / observations of the inspection vide its letter dated February 07, 2023.

Adjudication Order in the matter of Ventura Securities Limited Page 3 of 47 Sr. No. Alleged violations Regulatory provisions violated F Incorrect reporting of data under Risk Based Supervision Clause 6.1.1 ( j ) of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016. G Discrepancies in Margin Trading Funding Clause 3 and Clause 18 of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017. H Non-compliance with Cyber-security requirements Clause 36 of Annexure-1 of SEBI Circular SEBI/HO/MIRSD/CIR/PB/2018/147 dated December 03, 2018. I Non-adherence to rules of membership Rule 8(3)(f) of Securities Contracts (Regulation) Rules, 1957.

Adjudication Order in the matter of Ventura Securities Limited Page 4 of 47 SHOW CAUSE NOTICE, REPLY AND HEARING 5. Show Cause Notice bearing reference no.- SEBI/HO/EAD-8/SKV/VC/09785/2024 dated March 07, 2024 (hereinafter referred to as ‘SCN’) was issued to the Noticee in terms of the provisions of Rule 4(1) of the SEBI Adjudication Rules read with Section 15-I of the SEBI Act, 1992; and Rule 4(1) of the SCR Adjudication Rules read with Section 23-I of the SC(R) Act, 1956, requiring the Noticee to show cause as to why an inquiry should not be held against it and why penalty, if any, should not be imposed upon the Noticee under Section 15HB of the SEBI Act, 1992 and Section 23H of the SC(R) Act, 1996 for the alleged violations. I note that the SCN issued to Noticee was duly served upon the Noticee.

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Source: SecMarx — sebi:Order/SV/VC/2024-25/30562. 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.