https://www.taxtmi.com/caselaws?id=465091 Pledging client securities, using client funds for debit obligations or proprietary purposes, and routing loan-against-securities proceeds through connected entities was treated as a breach of SEBI's segregation and client-protection framework, with the broker and its commodity arm found to have misutilised client assets. Material mismatches between internal records and exchange or depository reporting on pledged securities, client balances, bank and demat accounts, and enhanced-supervision disclosures were found to violate reporting requirements. Non-production of records to the forensic auditor and delayed redress of investor complaints were also treated as compliance failures. The conduct was characterised as fraud and unfair trade practice, supporting liability of directors and related entities and resulting in debarment, restitution and monetary penalties against responsible noticees. en-us Wed, 11 Jan 2023 00:00:00 +0530 Thu, 04 Dec 2025 14:08:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465091 Pledging client securities, using client funds for debit obligations or proprietary purposes, and routing loan-against-securities proceeds through connected entities was treated as a breach of SEBI's segregation and client-protection framework, with the broker and its commodity arm found to have misutilised client assets. Material mismatches between internal records and exchange or depository reporting on pledged securities, client balances, bank and demat accounts, and enhanced-supervision disclosures were found to violate reporting requirements. Non-production of records to the forensic auditor and delayed redress of investor complaints were also treated as compliance failures. The conduct was characterised as fraud and unfair trade practice, supporting liability of directors and related entities and resulting in debarment, restitution and monetary penalties against responsible noticees. Case-Laws SEBI Wed, 11 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465091