SEBI issued Adjudication Order No. Order/AK/GN/2026-27/32395 against Ortem Securities Limited (SEBI Registration: INZ000284334, PAN: AAACO3435C), a registered stock broker. The order follows a joint SEBI-NSE thematic inspection covering April 2023 to November 2024 focused on the broker’s Authorized Persons (APs). Multiple compliance violations under SEBI (Stock Brokers) Regulations, 1992 and SEBI/NSE circulars were identified.

Key Points

• Ortem Securities Limited is a SEBI-registered stock broker subjected to a joint SEBI-NSE thematic inspection of its Authorized Persons (APs) for the period April 2023 to November 2024.
• The adjudicating officer was appointed on November 20, 2025 under Section 19 of the SEBI Act read with Section 15-I and Rule 3 of the Adjudication Rules.
• A Show Cause Notice (SCN) was issued on December 29, 2025 and served on December 30, 2025; Noticee submitted its reply on January 28, 2026.
• Four distinct violations were alleged: terminal misuse, failure to inspect APs, non-maintenance of pre-order confirmation, and misleading notice board information at AP premises.
• Trading terminals were provided to an individual (Sandip Kumar Sinha) who was found to be an employee of Twinkle Stock Consultants Pvt Ltd., not directly employed by the registered AP Ashish Rustagi.

Regulatory Changes

No new regulatory changes introduced. This order enforces existing obligations under:

• SEBI (Stock Brokers) Regulations, 1992
• Circulars issued by SEBI and NSE governing Authorized Persons
• Section 15HB of the SEBI Act, 1992 (penalties for contravention of regulations)

Compliance Requirements

• Stock brokers must ensure trading terminals are operated only by registered employees or duly authorized persons; sub-delegation to employees of third-party entities is not permitted.
• Brokers are required to conduct periodic inspections of all their Authorized Persons at least once every three years.
• Pre-order confirmations must be maintained as mandated by applicable circulars.
• All information displayed on the notice boards at AP offices must be accurate and compliant with regulatory requirements.

Important Dates

• Inspection Period: April 2023 – November 2024
• Noticee’s response to SEBI inspection findings: January 31, 2025
• Appointment of Adjudicating Officer: November 20, 2025
• Show Cause Notice issued: December 29, 2025
• SCN served: December 30, 2025
• Noticee’s reply submitted: January 28, 2026
• Adjudication Order issued: April 2026

Impact Assessment

This order is limited in scope to Ortem Securities Limited and has no direct market-wide or systemic impact. However, it signals continued SEBI-NSE focus on thematic inspections of stock brokers’ Authorized Person networks. Brokers maintaining AP relationships should review terminal access controls, AP inspection schedules, pre-order confirmation records, and notice board disclosures to ensure compliance and avoid similar enforcement actions.