Description

SEBI issued an order against Motisons Shares Limited (formerly Motisons Shares Private Limited), a registered stock broker, following inspections and adjudication proceedings, recommending a 15-day prohibition from taking new assignments and levying a penalty of Rs. 12 Lakhs.

Summary

SEBI issued an order under Section 12(3) of the SEBI Act, 1992 read with Regulation 27 of the SEBI (Intermediaries) Regulations, 2008 against Motisons Shares Limited (formerly Motisons Shares Private Limited), a SEBI-registered stock broker (INZ000191336). Following two inspections and adjudication proceedings, the Designated Authority recommended a 15-day prohibition from taking new assignments, and a separate penalty of Rs. 12 Lakhs was levied via an adjudication order dated August 12, 2025.

Key Points

  • Motisons Shares Limited is registered with SEBI as a stock broker on BSE and NSE across equity derivative, currency derivative, interest rate derivative, and commodity derivative segments.
  • The broker is also a clearing member with ICCL and NCL, and a depository participant with CDSL and NSDL.
  • SEBI conducted two inspections: Inspection 1 (April 1, 2021 – August 31, 2022) jointly with BSE and NSE; Inspection 2 (April 1, 2023 – June 30, 2024) as a limited-purpose inspection.
  • The Adjudicating Officer levied a monetary penalty of Rs. 12 Lakhs on August 12, 2025 based on conclusive findings.
  • The Designated Authority (same officer) submitted an enquiry report recommending a 15-day prohibition from taking new assignments/contracts under Regulation 26(1)(iv) of the Intermediaries Regulations.
  • A Show Cause Notice was issued on September 3, 2025; the Noticee replied on October 18, 2025 and attended a personal hearing on November 3, 2025.
  • Post-hearing submissions were filed on November 4, 2025.
  • The Noticee contended no client loss occurred and sought discharge without adverse directions.

Regulatory Changes

No new regulatory changes are introduced. The order applies existing provisions of the SEBI Act, 1992 (Section 12(3)) and SEBI (Intermediaries) Regulations, 2008 (Regulation 26(1)(iv) and Regulation 27) to enforce compliance standards for registered stock brokers.

Compliance Requirements

  • Motisons Shares Limited is subject to any directions issued under this order, including a potential prohibition from accepting new assignments or contracts for 15 days.
  • The broker must comply with all SEBI (Intermediaries) Regulations, 2008 requirements applicable to its registrations across all segments and exchanges.
  • All registered intermediaries should note the compliance expectations regarding inspection-period conduct covering client handling, operational, and regulatory obligations.

Important Dates

  • Inspection 1 period: April 1, 2021 – August 31, 2022
  • Inspection 2 period: April 1, 2023 – June 30, 2024
  • Adjudication order and DA report: August 12, 2025
  • Show Cause Notice issued: September 3, 2025
  • Noticee’s reply: October 18, 2025
  • Personal hearing: November 3, 2025
  • Post-hearing submissions: November 4, 2025
  • Order date: February 23, 2026

Impact Assessment

The order has a targeted impact on Motisons Shares Limited and its clients. A 15-day restriction on new assignments could temporarily limit the broker’s ability to onboard new clients or enter new contracts. The Rs. 12 Lakh penalty is modest relative to a multi-segment broker’s operations. The case signals SEBI’s continued vigilance in conducting joint inspections with exchanges and acting on findings through dual proceedings (adjudication and intermediaries regulations). Broader market impact is limited, but the order reinforces compliance obligations for all SEBI-registered stock brokers, clearing members, and depository participants.

Impact Justification

Action is specific to one intermediary (Motisons Shares Limited) with a relatively modest penalty of Rs. 12 Lakhs and a short 15-day new-assignment prohibition; limited systemic market impact but significant for the broker and its clients.