sebi:WTM/AS/MIRSD/MIRSD-SEC-1/31658/2025-26
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Facts / Headnote
Regulatory censure issued to the Noticee; 2 out of 5 allegations established; DA's recommendation of 1-month prohibition on on-boarding new clients not imposed.
Provisions invoked
- s. 19
- s. 11(1)
- s. 23D
Regulations
- Reg. 4
- Reg. 9(f)
- Reg. 23
- Reg. 25
- Reg. 27(5)
- Reg. 26
- Reg. 27(1)
- Reg. 4(2)(p)
Parties
- NNM Securities Private Limited
Holding
The Noticee was found to have violated Clause 1 of the SEBI 1993 Circular and Clause 3 of Annexure to the SEBI 2016 Circular (misuse of clients' funds), while the remaining three allegations (proprietary MTM misuse, engagement as principal in other business, and fraud under PFUTP) were not established. A regulatory censure was issued under Section 19 of the SEBI Act read with Regulation 27(5) of the Intermediaries Regulations.
Full text
Final Order in the matter of NNM Securities Private Limited Page 2 of 30 Contracts (Regulation) Rules, 1957 (hereinafter referred to as “SCRR”), SEBI (Stock Brokers) Regulations, 1992 (hereinafter referred to as “Stock Brokers Regulations”) and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to securities market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) were alleged against the Noticee.
Final Order in the matter of NNM Securities Private Limited Page 3 of 30 was provided by the DA on January 17, 2024, which was availed by the Noticee. Subsequently, the Noticee filed additional submissions on February 7, 2024.
Final Order in the matter of NNM Securities Private Limited Page 4 of 30 justice, the Noticee was given another opportunity of personal hearing in the matter on January 14, 2025. The AR of the Noticee vide email dated January 03, 2025, requested for adjournment citing his professional difficulties and inability to appear on the scheduled date. The request made by the Noticee was acceded to and the hearing in the matter was adjourned to February 18, 2025. Pursuant thereto, due to administrative reasons, hearing in the matter was rescheduled to March 04, 2025. On the said date, the ARs of the Noticee appeared and reiterated the submissions made earlier vide their reply(ies) filed in the matter. Accordingly, hearing in the matter was concluded.
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Source: SecMarx — sebi:WTM/AS/MIRSD/MIRSD-SEC-1/31658/2025-26. 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.