sebi:QJA/AB/MIRSD/MIRSD3/28880/2023-24
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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. 8(1)
- Reg. 9(f)
- Reg. 25
- Reg. 27
- Reg. 26(1)
- Reg. 27(5)
Parties
- Religare Securities Limited (Now known as Religare Broking Limited)
Holding
The noticee did not violate Clause A(2) of the Code of Conduct read with regulation 9(f) of the Broker Regulations, and the proceedings initiated by the post-enquiry show cause notice are disposed of without issuance of any directions.
Full text
Order in respect of Religare Securities Limited (Now known as Religare Broking Limited) Page 2 of 18 to the dealings of one of its clients, viz. Mr. Manish Devendra Rathi (hereinafter referred to as “Mr. Rathi/ Client”). It was observed during the investigation that the noticee had: a) failed to exercise due skill, care, diligence, professionalism and efficiency by accepting an authority letter which was not duly stamped and did not have any date and by not verifying the email ID and mobile number of Mr. Rathi; b) failed to exercise due skill, care, diligence, professionalism and efficiency by placing orders received from unregistered mobile number; and c) failed to report the dealings of Mr. Rathi, 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 Religare Securities Limited (Now known as Religare Broking Limited) Page 3 of 18 6. As regards the allegation levelled at para 2(b), the DA has observed that there was lack of diligence on the part of the noticee as 22 calls involving orders/ confirmations/ queries from/ to an unregistered mobile number were made from/ to Religare, without any client verification even though the said number was not registered with Religare.
Order in respect of Religare Securities Limited (Now known as Religare Broking Limited) Page 4 of 18 9. Pursuant to submission of the Report, a Post Enquiry Show Cause notice dated October 6, 2022 (hereinafter referred to as the “SCN”) enclosing a copy of the Report therewith was issued to the noticee to show cause as to why the action, as recommended by the DA, including other appropriate directions, if any, in terms of regulation 27 of the Intermediaries Regulations should not be taken/ issued against the noticee.
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Source: SecMarx — sebi:QJA/AB/MIRSD/MIRSD3/28880/2023-24. 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.