sebi:PKK/AO/236/2010
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Facts / Headnote
Violations of Regulations 20A, 42, 43, 49, 50 and 54 held established; total penalty of Rs. 1,00,000 imposed; charge under SEBI Circular dated August 24, 2004 not held guilty
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 19H
- s. 19G
- s. 19A
Regulations
- Reg. 20
- Reg. 42
- Reg. 54
- Reg. 43
- Reg. 49
- Reg. 50
Holding
The Noticee violated Regulations 20A, 42, 43, 49, 50 and 54 of the DP Regulations and is liable to a total monetary penalty of Rs. 1,00,000 under Sections 19A and 19G of the Depositories Act, 1996, but did not violate SEBI Circular No. MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004.
Full text
Page 2 of 10 complying with several provisions of the SEBI (Depositories and Participants) Regulations, 1996(DP Regulations) and certain circulars issued there under.
Page 3 of 10 Notice, Reply & Personal Hearing 5. The AO issued a Notice bearing no. EAD/SD/RKS/136433/2008 dated August 29, 2008 (hereinafter referred to as ‘SCN’) to the Noticee in terms of the provisions of Rule 4 of the Adjudicating Rules requiring to show cause as to why an inquiry should not be held against it for the alleged violations. It was alleged in the SCN that (a) the Noticee transferred securities of various beneficial owners (BO) to others’ account without any instruction slip. There were various instances where the instruction slips were not found for verification. (b) Account statements were not provided to the clients in such form, manner and time as agreed upon also as provided in the DP Regulations and the bye laws of the Depository. (c) Non maintenance of delivery instruction slips register, file containing correspondence with the Registrar to an issue and Share Transfer Agent (RTA) for demat request rejection and file for proof of dispatch of account statements of investors. (d) Time stamp was not affixed on Demat Request Forms (DRF) and failed to maintain records of the BOs who had surrendered securities. (e) Failure to exercise due diligence in opening BO accounts and (f) Failure in proper maintenance of data systems and back ups.
Page 4 of 10 07, 2008 sought eight weeks time for filing the reply. However, the Noticee has not submitted any reply to the SCN.
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Source: SecMarx — sebi:PKK/AO/236/2010. 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.