sebi:QJA/BS/MIRSD/MIRSD-SEC-2/32470/2026-27
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Facts / Headnote
Violations of multiple securities-law provisions upheld; no penalty imposed (regulatory censure recommended by DA; monetary penalty of Rs. 7 Lakhs under separate Adjudication Order already paid)
Provisions invoked
- s. 15
- s. 19
- s. 12
Regulations
- Reg. 7
- Reg. 9
- Reg. 2
- Reg. 9(e)
- Reg. 9(b)
- Reg. 25
- Reg. 27
- Reg. 26
- Reg. 27(1)
Parties
- Noticee (stock broker, formerly under Reliance Capital management; identity not fully stated in excerpt)
Holding
The Noticee was found to have violated multiple provisions of securities law including settlement of client funds, enhanced supervision reporting, risk-based supervision reporting, investor charter disclosure, cyber security framework, and Rule 8(3)(f) of the Securities Contract (Regulations) Rules 1957. No penalty was imposed in the present proceedings, taking into account the corrective actions taken and the Rs. 7 Lakh penalty already paid under a separate Adjudication Order.
Full text
Page 2 of 45 (hereinafter referred to as “Stock Brokers Regulations”) and applicable SEBI Circulars and circulars of stock exchanges. The inspection was conducted for the period beginning April 01, 2021 to November 30, 2022 (hereinafter referred to as “inspection period”). These findings/ observations of the inspection were communicated to the Noticee by SEBI vide letter dated April 22, 2024 and the Noticee response to the observations were received vide letter dated June 25, 2024.
Page 3 of 45 representatives on November 13, 2024. Further, the Noticee filed additional submissions vide letter dated November 19, 2024. Thereafter, based on the allegations levelled against the Noticee in the pre-Enquiry SCN, replies filed by the Noticee, submission made during the personal hearing and the material available on record, the DA concluded the Enquiry Proceedings and submitted the Enquiry Report (“Enquiry Report”) dated April 03, 2025 in terms of Regulation 26 of the Intermediaries Regulations.
Page 4 of 45 19, 2026. On the said date, the Authorized Representatives of Noticee reiterated their earlier submissions made vide letter dated January 24, 2026.
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Source: SecMarx — sebi:QJA/BS/MIRSD/MIRSD-SEC-2/32470/2026-27. 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.