sebi:WTM/AN/IMD/IMD-SEC-3/31701/2025-26
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Facts / Headnote
Penalty imposed on the Noticee for violations of net worth maintenance, non-submission of reports, and non-compliance with NISM certification requirements; directions in the Interim Order cum SCN disposed of.
Provisions invoked
- s. 15A
- s. 15H
- s. 11B(2)
Regulations
- Reg. 7
- Reg. 6
- Reg. 3
- Reg. 9
- Reg. 10
- Reg. 200
- Reg. 35
- Reg. 7(2)(d)
- Reg. 7(2)(g)
Parties
- DGS Capital Management Pvt. Ltd.
Holding
The Noticee was found in violation of the minimum net worth requirement under the PM Regulations from January 15, 2023 to February 24, 2025, of the report submission requirements under the PM Master Circular 2024 for FYs 2022-23 and 2023-24, and of the NISM certification requirements from September 07, 2023 to October 13, 2024. A total penalty of INR 3,00,000 was imposed and the directions in the Interim Order cum SCN were disposed of.
Full text
Order in the matter of DGS Capital Management Pvt. Ltd. Page 2 of 14 (iii) Comply with NISM certification requirements under the PM Regulations, PM Master Circular 2024, SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 (“SEBI Certification Regulations 2007”) and the Notification issued thereunder dated September 07, 2021.
Order in the matter of DGS Capital Management Pvt. Ltd. Page 3 of 14 commencement were required to raise its net worth to atleast INR 5 crores within 36 months from the commencement (i.e, DGS was required to raise its net worth to INR 5 crores by January 15, 2023 since it was registered prior to the commencement of PM Regulations). The net worth of DGS was noted to be INR 1.64 crores as on March 31, 2023 and INR 1.6 crores as on March 31, 2024. Vide email dated February 03, 2025, DGS was advised to provide its latest financials, which it failed to provide. Thus, DGS has failed to maintain the minimum net worth as required under the PM Regulations from January 15, 2023.
Order in the matter of DGS Capital Management Pvt. Ltd. Page 4 of 14 (ii) Non-submission of various reports: All pending reports were submitted within 2 days of receiving the Interim Order cum SCN on February 18, 2025 and February 19, 2025.
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Source: SecMarx — sebi:WTM/AN/IMD/IMD-SEC-3/31701/2025-26. 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.