sebi:QJA/AB/MIRSD/MIRSD3/28181/2023-24
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Facts / Headnote
Proceedings disposed of without issuance of any directions
Provisions invoked
- s. 19
- s. 12(3)
Regulations
- Reg. 6
- Reg. 9
- Reg. 9(f)
- Reg. 25
- Reg. 27
- Reg. 26(1)
- Reg. 27(5)
Parties
- Aditya Birla Money Limited
Holding
The noticee did not violate Clause A(2) of the Code of Conduct as specified in Schedule II read with regulation 9(f) of the Broker Regulations, and the post-enquiry show cause notice is disposed of without issuance of any directions.
Full text
Order in respect of Aditya Birla Money Limited Page 2 of 21 Javlekar (hereinafter referred to as “Mr. Abhay/ Client”). It was observed during the investigation that the noticee had: a) failed to exercise due skill, care, diligence, professionalism and efficiency by not verifying the email ID and mobile number of Mr. Abhay; and b) failed to report the dealings of Mr. Abhay, which were not commensurate with his annual income, as declared in the Know Your Customer form (hereinafter referred to as “KYC”) to the Financial Intelligence Unit (hereinafter referred to as the “FIU”).
Order in respect of Aditya Birla Money Limited Page 3 of 21 dated March 20, 2006 and para 10 and para 13 of SEBI Master Circular CIR/ISD/AML/3/2010 dated December 31, 2010 (hereinafter referred to as “SEBI PML Circulars”), was under an obligation to report certain transactions of Mr. Abhay to FIU, which it failed to do. The DA has observed that by not adhering to the SEBI PML Circulars, the noticee failed to exercise due care and diligence, professionalism in the conduct of its business. Accordingly, the DA recommended that the Certificate of Registration of the noticee (bearing no. INZ000172636), as a broker, may be suspended for a period of three months. The relevant excerpt of the Report is produced hereunder:
Order in respect of Aditya Birla Money Limited Page 4 of 21 9. On the scheduled date of hearing, Mr. Somasekhar Sundaresan, Advocate, Authorized Representative, along-with Mr. Pradeep Sharma, Chief Financial Officer and Mr. Muralikrishnan, Head, Legal and Compliance of the noticee, appeared through video conferencing and made oral submissions in the matter. As requested, the noticee was provided with 10 days’ time to file post hearing submissions in the matter, which it filed vide letter dated February 1, 2023.
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Source: SecMarx — sebi:QJA/AB/MIRSD/MIRSD3/28181/2023-24. 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.