Description

SEBI imposes penalty on Oneview Corporate Advisors Private Limited for violations during inspection including failure to exercise due diligence in 3 IPOs, maintain structural digital database, and comply with NISM certification requirements.

Summary

SEBI issued an adjudication order against Oneview Corporate Advisors Private Limited (Registration No. INM000011930), a registered Merchant Banker, following an inspection conducted on November 8 and 12, 2024. The inspection covered the period from April 1, 2022 to July 31, 2024 and found multiple violations of SEBI (Merchant Bankers) Regulations 1992, SEBI (Prohibition of Insider Trading) Regulations 2015, SEBI (Certification of Associated Persons in the Securities Markets) Regulations 2007, and SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018.

Key Points

  • Adjudication Order No: Order/AK/RK/2025-26/31711 issued under Section 15-I of SEBI Act, 1992
  • Show Cause Notice issued on April 9, 2025 (Ref. No. SEBI/EAD/EAD6/P/OW/2025/10638/1)
  • Inspection period: April 1, 2022 to July 31, 2024
  • Oneview Corporate Advisors registered as Merchant Banker since February 29, 2012
  • PAN: AAHCS5232N
  • Noticee replied to SCN via email dated May 9, 2025

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action for existing regulatory violations.

Compliance Requirements

Merchant Bankers must ensure compliance with:

  • Due Diligence: Exercise proper due diligence in all IPO transactions as required under MB Regulations
  • Structural Digital Database (SDD): Maintain complete and updated SDD as mandated
  • Investor Complaints: Upload disclosure of investor complaints on website in timely manner and ensure timely reporting
  • Record Maintenance: Maintain proper records and documents for all due-diligence activities
  • NISM Certification: Ensure all associated persons hold valid NISM certifications as required under CAPSM Regulations

Violations Alleged

  1. Failure to exercise due diligence in 3 IPOs (including IPO of Qualitek Labs Limited)
  2. Failure to maintain Structural Digital Database (SDD)
  3. Failure to upload investor complaint disclosures on website and delayed disclosure
  4. Failure to maintain records and documents for due-diligence activities
  5. Non-compliance with NISM Certification requirements for associated persons

Important Dates

  • February 29, 2012: Oneview Corporate Advisors registered as Merchant Banker
  • November 8, 2024: First day of SEBI inspection
  • November 12, 2024: Second day of SEBI inspection
  • March 25, 2025: Adjudicating Officer appointed
  • April 9, 2025: Show Cause Notice issued
  • May 9, 2025: Noticee submitted reply to SCN

Impact Assessment

This adjudication order highlights SEBI’s continued focus on ensuring merchant bankers maintain high standards of due diligence and compliance, particularly in IPO transactions. The violations related to IPO due diligence (specifically mentioning Qualitek Labs Limited) and SDD maintenance indicate systemic compliance gaps. The action serves as a reminder to all merchant bankers to:

  • Strengthen internal due diligence processes for public offerings
  • Implement robust systems for maintaining structural digital databases
  • Ensure timely and accurate investor complaint disclosures
  • Maintain comprehensive documentation of all due diligence activities
  • Monitor NISM certification compliance for all associated persons

The penalty proceedings under Section 15HB of SEBI Act indicate potential monetary sanctions, which will be determined based on the adjudication process. This case underscores the regulatory scrutiny on intermediaries’ operational compliance and their role as gatekeepers in capital markets.

Impact Justification

Enforcement action against merchant banker for multiple regulatory violations including IPO due diligence failures, impacts market intermediary standards but limited direct market impact