Description
SEBI imposes penalties on Sunflower Broking Private Limited for violations related to stock broker regulations and authorized person oversight during March-August 2023.
Summary
SEBI has issued an adjudication order against Sunflower Broking Private Limited (PAN: AAACN5165E) following a thematic inspection conducted from March 2023 to August 2023. The inspection focused on the stock broker’s oversight of its Authorized Person, Roof One Securities Private Limited. The order addresses multiple violations of stock broker regulations and various SEBI and exchange circulars.
Key Points
- Sunflower Broking Private Limited is a SEBI-registered stock broker with Roof One Securities Private Limited as its Authorized Person
- SEBI conducted thematic inspection from March 2023 to August 2023 regarding AP oversight
- Inspection findings were communicated on February 9, 2024, with company response on February 23, 2024
- Show Cause Notice issued on October 30, 2024, under adjudication proceedings
- New Adjudicating Officer appointed on April 9, 2025, following previous officer’s superannuation
Regulatory Changes
No new regulatory changes introduced. The order enforces existing provisions under:
- Securities and Exchange Board of India (Stock Brokers) Regulations, 1992
- Various BSE and NSE circulars from 2002 to 2023
- SEBI circular from November 6, 2009
Compliance Requirements
- Stock brokers must ensure proper oversight of their Authorized Persons
- Adherence to Code of Conduct provisions as per Schedule II of Stock Broker Regulations
- Compliance with exchange circulars regarding authorized person management
- Maintenance of proper records and procedures as mandated by regulatory framework
Important Dates
- March-August 2023: Inspection period
- February 9, 2024: Inspection findings communicated
- February 23, 2024: Company response submitted
- October 11, 2024: Previous Adjudicating Officer superannuation
- October 30, 2024: Show Cause Notice issued
- April 9, 2025: New Adjudicating Officer appointed
Impact Assessment
This enforcement action demonstrates SEBI’s continued focus on stock broker compliance, particularly regarding authorized person oversight. While specific to Sunflower Broking Private Limited, it serves as a reminder to all stock brokers about the importance of maintaining proper supervisory controls over their authorized persons. The action reinforces existing regulatory requirements without introducing new market-wide changes, limiting broader market impact while emphasizing compliance expectations for the brokerage industry.
Impact Justification
Enforcement action against specific broker with regulatory violations, limited broader market impact