sebi:QJA/SP/MIRSD/MIRSD_DPIEA/23165/2022-23
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Facts / Headnote
Certificate of registration of Kaynet Capital Limited as Stock Broker (INB011056737) and as Depository Participant (IN-DP-CDSL-461-2008) cancelled with immediate effect.
Provisions invoked
- s. 19
- s. 12(3)
Regulations
- Reg. 27
- Reg. 5
- Reg. 23
- Reg. 35
- Reg. 32
- Reg. 24
- Reg. 25
- Reg. 26
- Reg. 27(1)
- Reg. 32(2)
- Reg. 27(i)
- Reg. 5(a)
- Reg. 35(b)
Parties
- Kaynet Capital Limited
Holding
SEBI cancelled the certificate of registration of Kaynet Capital Limited as Stock Broker and Depository Participant because it ceased to be a member of any stock exchange and depository, thereby failing to satisfy the conditions of registration under Regulation 5(a) of the Stock Brokers Regulations and Regulation 35(b) of the DP Regulations.
Full text
Order in the Matter of Kaynet Capital Limited Page 2 of 10 as “BSE”), National Stock Exchange of India Limited (hereinafter referred to as “NSE”) and Central Depository Services Ltd. (hereinafter referred to as “CDSL”) had conducted a comprehensive joint inspection for the period April 1, 2018 to July 12, 2019 (hereinafter referred to as “inspection period”) of the Noticee. Pursuant to completion of the said inspection, one of the action recommended with respect to the Noticee was to conduct Enquiry in view of BSE declaring the Noticee defaulter on July 31, 2020 and CDSL declaring the Noticee defaulter on March 03, 2020.
Order in the Matter of Kaynet Capital Limited Page 3 of 10 not automatically render the registration granted by SEBI cancelled and consequently taking the entity out of jurisdiction of SEBI. In fact, Regulation 27 (i) of Stock Broker Regulations, makes a stock Broker liable for actions such as suspension or cancellation under Intermediaries Regulations.
Order in the Matter of Kaynet Capital Limited Page 4 of 10 d. Given the facts and circumstances of the matter, it is established that the Noticee ceased to be Member of BSE since August 16, 2019 and has not been re-admitted as Member for more than six months. Similarly, CDSL had declared the Noticee defaulter on March 03, 2020 and consequently registration of the Noticee as Stock Broker and DP are liable to be cancelled.
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Source: SecMarx — sebi:QJA/SP/MIRSD/MIRSD_DPIEA/23165/2022-23. 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.