sebi:WTM/ASB/MIRSD/MIRSD_DPIEA/28314/2023-24
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Facts / Headnote
Certificate of Registration of Fairwealth Securities Limited cancelled; violations of provisions enumerated at paragraph 2.2 upheld except SEBI Circular No. SEBI/MRD/Policy/AT/Cir-19/2004 dated April 21, 2004
Provisions invoked
- s. 19
- s. 12(1)
- s. 12A
- s. 12
- s. 13
- s. 12(3)
- s. 18
- s. 2(76)
- s. 76(2)
Regulations
- Reg. 4
- Reg. 3
- Reg. 17
- Reg. 4(2)
- Reg. 4(2)(f)
- Reg. 21
- Reg. 9
- Reg. 4(2)(m)
- Reg. 3(d)
- Reg. 27
- Reg. 26(1)
- Reg. 27(1)
- Reg. 4(2)(p)
Parties
- Fairwealth Securities Limited
Holding
The Noticee Fairwealth Securities Limited was found to have violated the provisions enumerated in paragraph 2.2 of the order (except SEBI Circular No. SEBI/MRD/Policy/AT/Cir-19/2004), and its Certificate of Registration was cancelled under Section 12(3) of the SEBI Act read with Regulation 27 of the Intermediaries Regulations.
Full text
Order in the Enquiry Proceedings against Fairwealth Securities Limited 2 / 49 Regulations, 2008 (“Intermediaries Regulations”), SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (“PFUTP Regulations”), and circulars made thereunder (“Interim Order”).
Order in the Enquiry Proceedings against Fairwealth Securities Limited 3 / 49 j. purchased securities in un-registered client codes, non-segregation of funds/securities of clients, code of conduct violations and discrepancies in email IDs and mobile numbers in the data of clients.
Order in the Enquiry Proceedings against Fairwealth Securities Limited 4 / 49 ▪ SEBI Circular SMD/SED/CIR/93/23321 dated November 18, 1993, SEBI Circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 for unauthorised pledging of client securities. ▪ SEBI Circular no. SEBI/MIRSD/SE/Cir-19/2009 dated December 03, 2009 for non-settlement of clients’ account. ▪ SEBI Circular no. SMD/SED/CIR/93/23321 dated November 18, 1993 and SEBI Circular no. SEBl/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 for mis‐utilisation of funds for own purposes/debit balance clients. ▪ Rule 15 of the Securities Contract (Regulation) Rules, 1957 (“SCRR, 1957”) and Regulation 17 of the Stock Brokers Regulations. Further, FSL has also violated Clause 6.1.1(j) of Annexure of SEBI Circular SEBI/HO/MIRSD/MIRSD2 /CIR/P/2016/95 dated September 26, 2016 for misrepresenting books of account and submission of incorrect Net Worth Certificate to Exchange. ▪ Regulation 21 of the Stock Brokers Regulations and Clause A(5) of Schedule II read with Regulation 9 (f) of Stock Brokers Regulations for failure to furnish documents to exchange/auditor resulting in non- cooperation. ▪ Section 12(1) of SEBI Act read with Rule 8 (1) (f) and 8 (3) (f) of SCRR, 1957 for engaging in business other than securities through related party transactions. ▪ Clause 2(B) of SEBI Circular CIR/MIRSD/15/2011 dated August 02, 2011 for discrepancies in email IDs and mobile numbers in the data of clients. ▪ SEBI Circular N
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Source: SecMarx — sebi:WTM/ASB/MIRSD/MIRSD_DPIEA/28314/2023-24. 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.