sebi:Order/VV/PSS/2022-23/22623

SEBI · SEBI · 2022-08-29 · Vijayant Kumar Verma, Adjudicating Officer

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Provisions invoked

Regulations

Parties

Holding

The Noticee was found to have violated multiple SEBI circulars, exchange regulations, and rules relating to misuse of client funds, short collection of margin, KYC/CKYC non-upload, mapping of email/mobile numbers, contract note delivery, net worth computation, and RBS reporting. The AO accepted certain mitigating factors including overlapping penalties imposed earlier by NSE and BSE for a limited portion of the violations.

Full text

Adjudication order in the matter of Asit C Mehta Investment Intermediaries Limited Page 2 of 43 AO, Shri Amit Kapoor, General Manager was appointed as Adjudicating Officer (“earlier AO”) in the instant matter vide order dated August 29, 2022. Subsequently, pursuant to reallocation of cases, the undersigned has been appointed as Adjudicating Officer vide Order dated October 3, 2022 to inquire into and adjudge under section 15HB of the SEBI Act and under sections 23D and 23H of the SCR Act. The appointment of the current AO was communicated to the Undersigned vide communication order dated October 6, 2022. It has been advised that except for the change of the Adjudicating Officer, the other terms and condition of the original orders (whereby the aforesaid Adjudicating Officers was appointed) ‘shall remain unchanged and shall be in full force and effect’. It has also been advised that ‘I should proceed in accordance with the terms of reference made in the original orders’.

Adjudication order in the matter of Asit C Mehta Investment Intermediaries Limited Page 3 of 43 d) SEBI Circular CIR/MIRSD/120/2016 dated November 10, 2016 read with SEBI Circular CIR/MIRSD/66/2016 dated July 21, 2016. e) Clause 2(B) of SEBI Circular CIR/MIRSD/15/2011 dated August 02, 2011 f) Clause B.2 of Schedule II of Regulation 9 of SEBI (Stock Brokers) Regulations, 1992. g) Regulation 6.1.5 of the NSE (F&O segment) Trading Regulations and Regulation 6.1.4 of Part A of the NSE (Capital Market Segment) Trading Regulations h) Clause 2(B) of SEBI Circular CIR/MIRSD/15/2011 dated August 02, 2011 r/w NSE circular NSE/INSP/27368 dated August 18, 2014. i) Clause 6.1.1(j) of Annexure of SEBI Circular SEBI/HO/MIRSD/ MIRSD2/CIR/P/2016/95 dated September 26, 2016 read with Rule 33 of Chapter III of the Rules of NSEIL and NSE circular NSE/MEMB/2739 dated July 30, 2001 j) Rule 8(3)(f) of Securities Contract (Regulation) Rules, 1957 k) Clause 3.2 of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/ CIR/P/2016/95 dated September 26, 2016 l) Clause 7 of Annexure to SEBI circular SEBI/HO/MIRSD/MIRSD2/ CIR/P/2016/95 dated September 26, 2016 m) Clause 6.1.1.e of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2/ CIR/P/2016/95 dated September 26, 2016.

Adjudication order in the matter of Asit C Mehta Investment Intermediaries Limited Page 4 of 43 “Inspection Period / IP”). On the basis of said inspection, following allegations were levelled against the Noticee: Table 1 S.No.

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