Description
SEBI adjudication order imposing penalty on stock broker Integrated Master Securities for providing false information and failing to maintain call recordings during insider trading investigation in Mastek Ltd. scrip.
Summary
SEBI has issued an adjudication order against Integrated Master Securities Private Limited (PAN: AAACI2074F), a registered stock broker (Registration No. INZ000175931), for violations during an insider trading investigation in Mastek Ltd. scrip. The broker is alleged to have provided false and misleading information to SEBI and failed to maintain original call recordings of client orders during the investigation period from December 1, 2022 to August 31, 2023.
Key Points
- Investigation conducted in trading activities of certain entities in Mastek Ltd. scrip from December 1, 2022 to August 31, 2023
- Integrated Master Securities Private Limited accused of providing false and misleading information to SEBI during investigation
- Broker failed to maintain original call recordings of client orders as required
- Violations of Section 11C(3) of SEBI Act and various SEBI circulars and broker regulations alleged
- Show Cause Notice issued on June 4, 2025 for adjudication proceedings
- Adjudicating Officer appointed on May 29, 2025 to conduct inquiry and impose penalties
Regulatory Changes
No new regulatory changes introduced. This is an enforcement action under existing regulations.
Compliance Requirements
- Stock brokers must maintain accurate and complete records including original call recordings of client orders
- Brokers must provide truthful and complete information to SEBI during investigations
- Compliance with SEBI Circular dated March 22, 2018 and Master Circular dated May 17, 2023 regarding record maintenance
- Adherence to Schedule II clauses A(1), A(2) and A(5) of SEBI (Stock Brokers) Regulations, 1992
Important Dates
- Investigation Period: December 1, 2022 to August 31, 2023
- Adjudicating Officer appointed: May 29, 2025
- Show Cause Notice issued: June 4, 2025
- Order date: August 19, 2025
Impact Assessment
This enforcement action reinforces SEBI’s commitment to maintaining integrity in market investigations and ensuring broker compliance with record-keeping requirements. The case highlights the importance of accurate information sharing during regulatory investigations and proper maintenance of client communication records by registered intermediaries.
Impact Justification
Enforcement action against registered broker for compliance violations during investigation, affects broker operations and regulatory standards