sebi:QJA/GR/DDHS/DDHS-SEC-1/30195/2023-24
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Facts / Headnote
Cancellation of certificate of Registration No - INM000008365 of Karvy Investor Services Limited as Merchant Banker
Provisions invoked
- s. 19
- s. 12(3)
- s. 154
Regulations
- Reg. 7
- Reg. 8
- Reg. 12
- Reg. 3
- Reg. 23
- Reg. 12(1)
- Reg. 28
- Reg. 6
- Reg. 25
- Reg. 27
- Reg. 26(1)
- Reg. 26
- Reg. 35
- Reg. 25(1)
- Reg. 9
- Reg. 9A
- Reg. 27(1)
- Reg. 24(2)
- Reg. 5
- Reg. 9(1)(e)
Parties
- Karvy Investor Services Limited
Holding
The certificate of registration No. INM000008365 of Karvy Investor Services Limited as Merchant Banker is cancelled for failure to meet eligibility, fit and proper and fee conditions.
Full text
Order in the matter of Karvy Investor Services Limited Page 2 of 24 duties of Merchant Banker and also did not have two persons who have experience to conduct the business of merchant banker.
Order in the matter of Karvy Investor Services Limited Page 3 of 24 Enquiry by the Designated Authority 5. The DA issued a Show Cause Notice dated September 05, 2023 (hereinafter referred to as 'DA SCN') to Noticee under Regulation 25(1) of Intermediaries Regulations to show cause as to why appropriate action should not be recommended against Noticee as specified in Regulation 26 of Intermediaries Regulations read with Regulation 23 of Intermediaries Regulations and Section 12(3) of SEBI Act for the violations alleged above within 21 days of the receipt of DA SCN. It was also informed that if the Noticee fails to reply, it shall be presumed that the Noticee has no reply to submit and the matter shall be proceeded on the basis of the material available on record. The irregularities noticed during the course of the inspection and the allegations levelled in the DA SCN issued by the DA have been summarized hereunder: 5.1 Noticee did not have the necessary infrastructure like adequate office space, equipment's, and manpower to effectively discharge its duties as a Merchant Banker and thereby has violated Regulation 6(aa) of Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 (‘Merchant Bankers Regulations’) read with Regulation 9(1)(e) of Intermediaries Regulations. 5.2 Noticee did not have two persons who have experience to conduct the business of merchant banker and thereby, has violated Regulation 6(b) of Merchant Bankers Regulations read with Regulatio
Order in the matter of Karvy Investor Services Limited Page 4 of 24 5.4 Noticee did not paid the renewal fee for the block December 13, 2022 to December 12, 2025, and thereby has allegedly violated Noticee has contravened Regulation 12(1) Merchant Bankers Regulations read with Regulation 9A(b) of Merchant Bankers Regulations and Regulation 9(1)(b) of Intermediaries Regulations. 5.5 Noticee is no longer a fit and proper person and has violated Regulation 6(gg) read with Regulation 6A of Merchant Bankers Regulations, Regulation 9(1) (e) and Schedule II of the Intermediaries Regulations.
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Source: SecMarx — sebi:QJA/GR/DDHS/DDHS-SEC-1/30195/2023-24. 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.