sebi:RA/DPS/136/2017

SEBI · SEBI · 2015-07-21 · Rachna Anand, Adjudicating Officer

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Facts / Headnote

Penalty imposed on Noticee for multiple violations of SEBI regulations and circulars

Provisions invoked

• s. 15
• s. 15H
• s. 15J

Regulations

• Reg. 15(1)(b)
• Reg. 15
• Reg. 26
• Reg. 2

Parties

• M/s Darla N Darla (K. Manoharchand Darla, Proprietor)

Holding

The Noticee, M/s Darla N Darla, was found to have violated multiple SEBI regulations and circulars by indulging in direct settlement with clients, unexplained cash transactions beyond prescribed ceilings, undisclosed lending and borrowing activity, and frequent non-genuine client code changes, and a penalty of Rs. 16,00,000 was imposed under section 15HB of the SEBI Act.

Full text

Adjudication Order in respect of M/s Darla N Darla Page 2 of 27 APPOINTMENT OF ADJUDICATING OFFICER 2. SEBI had vide order dated July 21, 2015 appointed the undersigned as Adjudicating Officer under section 15 I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as 'SEBI Act'), read with rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under section 15HB of the SEBI Act.

Adjudication Order in respect of M/s Darla N Darla Page 3 of 27 7. Further in terms of amendment to Clause B(1) of Code of Conduct prescribed for sub- brokers in Schedule II under Regulation 15 of SEBI SBB Regulations, wherein w.e.f 23.9.2003, the sub-brokers have been prohibited from “making payment in respect of securities sold and arrange for prompt delivery of securities purchased by clients”.

Adjudication Order in respect of M/s Darla N Darla Page 4 of 27 9 21/08/ 2014 13017400 00053230 K. Manohar Chand 12077600 00001249 Usha K Beardsell Ltd 1 10 21/08/ 2014 13017400 00053230 K. Manohar Chand 12077600 00001308 Bhuvana Sundar Beardsell Ltd 1 11 21/08/ 2014 13017400 00053230 K. Manohar Chand 12077600 00001331 S. Kaliammal Beardsell Ltd 1 12 21/08/ 2014 13017400 00053230 K. Manohar Chand 13017400 00127663 M. Pranav Jain Beardsell Ltd 1 13 21/08/ 2014 13017400 00053230 K. Manohar Chand 13017400 00127678 M. Prerna Jain Beardsell Ltd 1 14 21/08/ 2014 13017400 00053230 K. Manohar Chand 13017400 00053226 M. Payal Beardsell Ltd 1 15 21/08/ 2014 13017400 00053230 K. Manohar Chand 12037600 00204179 M Sangeetha Beardsell Ltd 1 16 21/08/ 2014 13017400 00053230 K. Manohar Chand 12037600 00054118 K. Manohar Chand(Huf) Beardsell Ltd 1 17 22/03/ 2013 13017400 00053230 K. Manohar Chand 13017400 00056738 M. Manjual Atul Ltd. 750 18 21/07/ 2012 13017400 00053230 K. Manohar Chand 13017400 00127663 M. Pranav Jain Bil 8.25 150313 2 19 21/07/ 2012 13017400 00053230 K. Manohar Chand 13017400 00127678 M. Prerna Jain Bil 8.25 150313 2 20 20/07/ 2012 13017400 K. Manohar Chand 13017400 00127678 M. Prerna Jain Britannia Ind –Eq 2/- 10 21 20/07/ 2012 13017400 00053230 K. Manohar Chand 13017400 00127663 M. Pranav Jain Britannia Ind –Eq 2/- 10 22 14/02/ 2013 13017400 00053230 K. Manohar Chand 13017400 00053211 M. Hemendra Kumar R Systems 109

Source: SecMarx — sebi:RA/DPS/136/2017. 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.