sebi:WTM/AN/CFD/CFD-SEC-4/31702/2025-26
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Facts / Headnote
Registration certificate suspended for a period of 2 months with immediate effect
Provisions invoked
- s. 19
- s. 12(3)
Regulations
- Reg. 7
- Reg. 6
- Reg. 3
- Reg. 8
- Reg. 5
- Reg. 27
- Reg. 26
- Reg. 9A
- Reg. 27(1)
- Reg. 9A(d)
- Reg. 22B
Parties
- First Overseas Capital Ltd.
Holding
The WTM held that First Overseas Capital Ltd. violated regulation 7 read with regulation 9A(d) of the MB Regulations by failing to maintain minimum net worth of INR 5 crores for FYs ending 2019-2021, and suspended its registration certificate for 2 months with immediate effect.
Full text
Order in the matter of First Overseas Capital Ltd. Page 2 of 20 made against it in terms of regulation 26 of the Intermediaries Regulations for the alleged violation. In response to the DA SCN, the Noticee filed its reply vide letter dated May 17, 2023 and emails dated December 20, 2024 and December 27, 2024. Further, an opportunity of personal hearing was granted by the DA on December 19, 2024, which was availed by the Noticee / its Authorized Representative (“AR”).
Order in the matter of First Overseas Capital Ltd. Page 3 of 20 5.4 The contention of the Noticee that it has met the net worth criteria of INR 5 crores as on March 31, 2023 and March 31, 2024 in no manner exonerates the Noticee from its failure to comply with the net worth requirement for the FYs ended 2019-
Order in the matter of First Overseas Capital Ltd. Page 4 of 20 capital market can enter the market. Therefore, any breach by a MB with regard to the net worth requirement has to be viewed seriously.
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Source: SecMarx — sebi:WTM/AN/CFD/CFD-SEC-4/31702/2025-26. 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.