sebi:WTM/KMA/MIRSD-ERO/25/12/2008
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Facts / Headnote
Warning imposed on the portfolio manager; enquiry proceedings disposed of.
Provisions invoked
- s. 19
Regulations
- Reg. 13
- Reg. 14
- Reg. 28(2)
- Reg. 15(1)
- Reg. 20
- Reg. 14(2)
- Reg. 20(2)
- Reg. 20(3)
- Reg. 14(1)(a)
- Reg. 14(2)(c)
Parties
- KB Capital Markets Private Limited (Registration No. INP 000001041)
Holding
The noticee, KB Capital Markets Private Limited, was found to have violated Regulations 15(1), 15(3), 14(2)(c), 20(3) and 14(1)(a) of the Portfolio Managers Regulations, and a penalty of warning was imposed on it.
Full text
Page 2 of 8 Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (since repealed) to enquire into the alleged violations committed by the noticee, as stated therein. The Enquiry Officer/Designated Authority (hereinafter referred to as the Enquiry Officer for the sake of shortness), vide report dated September 19, 2008 recommended to impose a penalty of warning to the noticee. Pursuant to the submission of the Enquiry Report, a notice dated October 16, 2008 was issued to the noticee by SEBI asking it to show cause as to why action should not be taken against it as recommended by the Enquiry Officer or as it considered appropriate. The noticee vide letter dated October 22, 2008 accepted that it had committed an unintentional mistake in respect of charge of violation of Regulation 20(3) of Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993 (hereinafter referred to as the Portfolio Managers Regulations). However, according to the noticee, it was not a dishonest mistake. Regarding the observation of the Enquiry Officer in respect of the violation of Know Your Clients (KYC) requirements, the noticee contended that the Enquiry Officer had not taken into account its
Page 3 of 8 noticee, as stated above and other materials available on record. According to the Enquiry Officer, the noticee committed certain violations. Some of which are:
Page 4 of 8 Officer. As Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 was repealed with effect from the notification of Securities and Exchange Board of India (Intermediaries) Regulations, 2008, I proceed with this matter in terms of the Securities and Exchange Board of India (Intermediaries) Regulations,
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Source: SecMarx — sebi:WTM/KMA/MIRSD-ERO/25/12/2008. 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.