Upstox Settles Case With Sebi Over Regulatory Norms Violation

New Delhi:Brokerage company RKSV Securities India Upstox on Friday settled with capital markets regulator Sebi a case pertaining to alleged violation of regulatory norms.The company paid Rs 1.13 crore towards the settlement charges.

Sebi order

The settlement order came after the noticee RKSV Securities India Pvt Ltd proposed to settle the instant proceedings initiated against it, without admitting or denying the findings of facts and conclusions of law.The instant adjudication proceedings initiated against RKSV Securities India Private Limited vide show cause notice SCN dated January 25, 2022 is disposed of in terms of settlement regulations, Sebis Adjudicating Officer Barnali Mukherjee said in the order.

Background

The market watchdog had initiated adjudication proceedings against RKSV Securities India Pvt Ltd applicant for the alleged violation of Sebi MIRSD Market Intermediaries Regulation and Supervision Department Circular dated December 3, 2018.The MIRSD circular is related to cyber security and cyber resilience framework for stock brokers/depository participants, and is mandatory for all the stockbrokers to maintain robust cyber security and cyber resilience framework to protect the integrity of data and privacy.

Show cause notice

Following this, a show cause notice was issued by the market regulator to the noticee RKSV Securities India Pvt Ltd on January 25, 2022 for the alleged violation of norms, the regulator said.Subsequent to the issuance of the SCN, the applicant filed a settlement application with regulator, and further made a presentation regarding cyber security policies before Sebis High Powered Steering Committee on Cyber Security HPSC-CS.

Payment and settlement

Thereafter, the applicant made submissions in response to the queries raised by the HPSC-CS. Based on that, HPSC-CS, on May 15, 2023, recommended to conclude the matter on payment of Rs 1.13 crore.Consequently, the applicant paid the amount and settled the case.