Description

SEBI final order against Raghunandan Capital Private Limited for violations of Stock Brokers Regulations following thematic inspection

Summary

SEBI issued a final order under Section 12(3) of SEBI Act, 1992 and Regulation 27 of SEBI (Intermediaries) Regulations, 2008 against Raghunandan Capital Private Limited (SEBI Registration No. INZ000307234). The order follows a thematic inspection conducted jointly with stock exchanges (NSE, BSE, MCX, NCDEX) from November 7-8, 2023, covering the period April 1, 2022 to September 30, 2023.

Key Points

  • Thematic inspection revealed violations of Stock Brokers Regulations and applicable SEBI/Stock Exchange circulars
  • Show cause notice issued on December 4, 2024 following post-enquiry proceedings
  • Designated Authority conducted enquiry proceedings under Chapter V of Intermediaries Regulations
  • Personal hearing granted on November 6, 2024, with additional submissions filed on November 16, 2024
  • Enquiry Report submitted on November 27, 2024

Regulatory Changes

No specific regulatory changes announced in this enforcement order.

Compliance Requirements

Stock brokers must ensure compliance with:

  • SEBI (Stock Brokers) Regulations, 1992
  • SEBI (Intermediaries) Regulations, 2008
  • Applicable SEBI circulars
  • Stock exchange circulars

Important Dates

  • Inspection Period: April 1, 2022 to September 30, 2023
  • Inspection Conducted: November 7-8, 2023
  • Findings Communicated: January 3, 2024
  • Noticee Response: April 29, 2024
  • Designated Authority Appointed: July 29, 2024
  • Pre-Enquiry SCN: August 19, 2024
  • Reply Filed: October 24, 2024
  • Personal Hearing: November 6, 2024
  • Additional Submissions: November 16, 2024
  • Enquiry Report: November 27, 2024
  • Final SCN: December 4, 2024

Impact Assessment

This enforcement action demonstrates SEBI’s continued focus on ensuring intermediary compliance through thematic inspections. The order serves as a reminder to all stock brokers to maintain strict adherence to regulatory requirements and circulars issued by SEBI and stock exchanges.

Impact Justification

Enforcement action against specific broker with compliance violations