May
10, 2010
PR No. 115/2010
Consent Order on the application submitted by Motilal Oswal Securities Limited
in the matter of IPO irregularities
A Panel consisting of Whole Time Members, Dr. K.M. Abraham and Shri Prashant Saran has passed a consent order on May 06, 2010 in the matter of �irregularities in the IPOs" on an application submitted by Motilal Oswal Securities Limited, Depository Participant (DP).
Motilal Oswal Securities Limited a SEBI registered Depository Participant (DP) of CDSL and NSDL (Registration No.-IN-DP-CDSL-09-99 and IN-DP-NSDL-152-2000), having its registered office at Palm Spring Centre, 2nd Floor Palm Court Complex, Link Road, Malad (West), Mumbai-400064, had failed to exercise due diligence and did not adhere to the Know your Clients� norms while opening 697 demat accounts with common addresses. Based on the findings, SEBI had passed ad interim ex parte order dated 27.04.2006 directing applicant not to open fresh demat accounts till further directions. Pursuant to investigation, enquiry officer issued a show cause noticed dated February 09, 2007. The Enquiry Officer found that the charges leveled against the entity stood established and recommended that the certificate of registration granted to the entity as DP of CDSL be suspended for a period of seven days.
The entity made application with SEBI for consent. High Powered Advisory Committee (HPAC) recommended the case for settlement and SEBI accepted the said recommendations. Accordingly, applicant without admitting or denying the charges has remitted a sum of Rs. 5,00,000/- (Rupees five lakh only) toward settlement charges.
Mumbai
May 10, 2010
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