New Delhi, Oct 16 (PTI) Orbis Financial Corporation Ltd on Wednesday settled a case pertaining to alleged flouting of custodian rules with markets regulator Sebi after paying Rs 1.6 crore towards settlement amount.
This came after Orbis filed a settlement application with Sebi proposing to settle the alleged violations initiated against it “without admitting or denying of the findings”.
“In view of the receipt of settlement amount by Sebi, the instant adjudication proceedings initiated against the noticee viz., Orbis Financial Corporation Ltd (Custodian), vide show cause notice … dated December 27, 2023, are hereby disposed of,” the regulator said in a settlement order.
The Securities and Exchange Board of India (Sebi) received the settlement amount of Rs 1.59 crore on October 12 from Orbis.
In its show cause notice, the regulator alleged that Orbis did not employ necessary infrastructure; competent persons for managing custodians business, and there was lack of professionalism in the discharge of duties.
Additionally, it allegedly failed to maintain proper software for physical securities; allowing unauthorised persons to access the Vault; accused of underpaying fees to Sebi for the FY 2021-22; made incorrect quarterly reporting to Sebi during the FY 2020-2021 and FY 2021-2022, and made delay in processing of corporate actions.
Among others, it was alleged that Orbis failed to report short sale transactions in the monthly reports, submit annual reports to Sebi within the timelines, update the operation manual periodically, monitor the investments by FPIs in debt instruments as well made incorrect submissions to the regulator in response to communication of findings of inspection, the order noted. PTI SP MR
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