sebi:WTM/VKC/MIRSD/37/07
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Facts / Headnote
Show Cause Notice disposed of without passing any further directions; no cease and desist order issued.
Provisions invoked
- s. 11D
Parties
- Karvy Consultants Limited
Holding
The Whole Time Member found that KCL committed irregularities violative of SEBI circular SMDRP/Policy/Cir-36/2000, but declined to pass any cease and desist directions because the DP business had been transferred to KSBL and similar violations were already under enquiry in IPO investigation proceedings.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ In the matter of Inspection of Depository Participant activities of Karvy Consultants Limited Jan 19, 2007 | Orders : Orders of Chairman/Members BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA Coram: V.K.CHOPRA, WHOLE TIME MEMBER
KCL submitted that the applications pertained to the accounts opened in 1998-99 when there was no clear guidelines wit acceptance of applications with POA. KCL further stated that there were certain common accounts where only one set of doc collected and these have been subsequently replicated. KCL stated that the deficiencies in the account opening application form clerical in nature have been rectified and necessary documents have been collected wherever required. From the above submissio the DP has not denied the allegation. Opening of beneficiary account by following improper procedure may result in misuse o system.
on the observations of inspection. KCL vide its letter dated April 17, 2003 furnished its reply to the said observations. After considering the submissions made by KCL, a show cause notice was issued to it on May 5, 2004, advising it to show cause as to why ‘cease and desist’ proceedings under section 11D of SEBI Act,1992, should not be initiated against it for the lapses and irregularities observed during the inspection. KCL was advised to send its reply to the said show cause and also indicate if it desired a personal hearing before the competent authority. A reply to the show cause notice was received from KCL vide letter dated May 22, 2004. KCL sought an opportunity for a personal hearing. An opportunity of personal hearing was given to KCL on October 18, 2004. However, due to change in the Competent Authority, KCL was granted another opportunity of personal hearing on July 27, 2006. KCL was represented by the officials mentioned in the first page of this order who made
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Source: SecMarx — sebi:WTM/VKC/MIRSD/37/07. 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.