sebi:RA/CB/380/2018
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee held liable and penalty of Rs. 3,00,000 and Rs. 5,00,000 imposed under Section 15HB of the SEBI Act, payable within 45 days
Provisions invoked
- s. 15
- s. 11(1)
- s. 12
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 23I
- s. 23J
- s. 23
- s. 23D
Regulations
- Reg. 9(f)
- Reg. 26
- Reg. 9
Parties
- A C Choksy Share Brokers Pvt. Limited
Holding
The Noticee violated SEBI circulars on AML/CFT beneficial ownership updating, segregation of client funds/securities, and quarterly settlement of running accounts read with the Code of Conduct, and was imposed total monetary penalty of Rs. 8,00,000 under Section 15HB of the SEBI Act.
Full text
Adjudication Order in the matter of A C Choksy Share Brokers Pvt. Limited Page 2 of 32 1992 (hereinafter be referred to as, the “Stock Brokers Regulations”) and various SEBI circulars viz. CIR/MIRSD/2/2013 dated January 24, 2013, SMD/SED/CIR/93/23321 dated November 18, 1993, MIRSD/SE/Cir-19/2009 dated December 03, 2009, MIRSD/SE/Cir-5/2010 dated March 31, 2010 and National Stock Exchange of India Ltd. (hereinafter be referred to as, the “NSE”) Circulars, viz. NSE/INSP/14048 dated February 03, 2010, NSE/INSP/21651 dated September 07, 2012, NSE/INSP/24849 dated October 29, 2013 were observed to have been committed by the Noticee.
Adjudication Order in the matter of A C Choksy Share Brokers Pvt. Limited Page 3 of 32 i. Inspection revealed that the Noticee updated its Anti Money Laundering (“AML”) / Combating the Financing of Terrorism (“CFT”) policy with respect to identification of beneficial ownership on October 16, 2014. ii. The aforesaid AML / CFT policies were required to be reviewed immediately in terms of SEBI Circular CIR/MIRSD/2/2013 dated January 24, 2013. However, it was alleged that the Noticee updated its AML / CFT policy on October 16, 2014, i.e. after a delay of approximately 20 months. In view of the aforementioned observations, it was alleged that, the Noticee had delayed in updating its AML / CFT Policy and thereby, had violated the SEBI Circular CIR/MIRSD/2/2013 dated January 24, 2013 (with respect to Identification of Beneficial Ownership) and Clause A (2) of the Code of Conduct read with Regulation 9(f) of the Stock Broker Regulations.
Adjudication Order in the matter of A C Choksy Share Brokers Pvt. Limited Page 4 of 32 Clause A(1), (2) & (5) of the Code of Conduct read with Regulation 9(f) of the Stock Broker Regulations.
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Source: SecMarx — sebi:RA/CB/380/2018. 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.