Motilal Oswal Capital Limited

Allegations: ALLEGEDLY ENGAGING IN UNAUTHORIZED TRADING PLEASE NOTE THE DRP AS FILED IS ASSOCIATED WITH MOTILAL OSWAL SECURITIES LIMITED (MOSL) WHICH MERGED WITH MOTILAL OSWAL FINANCIAL SERVICES LTD (MOFSL) EFFECTIVE AUGUST 21, 2018. Status: Final Sanction Detail: DISPOSITION RESULTED IN A PENALTY OF RS. 2,00,000/- ( RUPEES TWO LAKHS ONLY), WHICH IS APPROXIMATELY $2,922.64 U.S. DOLLARS. PLEASE NOTE THE DRP AS FILED IS ASSOCIATED WITH MOTILAL OSWAL SECURITIES LIMITED (MOSL) WHICH MERGED WITH MOTILAL OSWAL FINANCIAL SERVICES LTD (MOFSL) EFFECTIVE AUGUST 21, 2018. Summary: PLEASE NOTE THE DRP AS FILED IS ASSOCIATED WITH MOTILAL OSWAL SECURITIES LIMITED (MOSL) WHICH MERGED WITH MOTILAL OSWAL FINANCIAL SERVICES LTD (MOFSL) EFFECTIVE AUGUST 21, 2018. A CLIENT ALLEGED TO SEBI THAT MOSL ENGAGED IN UNAUTHORIZED TRADING.

Allegations: AN ORDER DATED FEBRUARY 22, 2019 PASSED BY WTM AGAINST ONE OF OUR WHOLLY OWNED SUBSIDIARY COMPANY I.E. MOTILAL OSWAL COMMODITIES BROKER PRIVATE LIMITED ("MOCBPL"), WHEREIN SEBI HAD HELD THAT MOCBPL IS NOT A FIT AND PROPER PERSON TO HOLD, DIRECTLY OR INDIRECTLY, THE CERTIFICATE OF REGISTRATION AS COMMODITY BROKER. IN THIS REGARD, MOCBPL HAD FILED AN APPEAL BEFORE HON'BLE SECURITIES APPELLATE TRIBUNAL ("SAT") CHALLENGING THE SAID ORDER OF WTM OF SEBI. HON'BLE SAT HAS ALLOWED MOCBPL'S APPEAL AND REMANDED THE MATTER BACK TO SEBI FOR DECIDING AFRESH. PURSUANT TO SAT ORDER WTM OF SEBI PASSED ORDER DATED NOVEMBER 29, 2022, BY DEBARRING MOCBPL FROM MAKING A FRESH APPLICATION SEEKING REGISTRATION, BEFORE SEBI, FOR A PERIOD OF 3 (THREE) MONTHS FROM THE DATE OF THE ORDER. MOCBPL HAS FILED AN APPEAL AGAINST SAD ORDERS BEFORE SECURITIES APPELLATE TRIBUNAL AND THE SAME IS CURRENTLY PENDING Status: Final Sanction Detail: MCX ISSUED US SHOW CAUSE NOTICE DATED AUGUST 20,2018, ALLEGING THAT AS WE FAILED TO INFORM MCX ABOUT REJECTION OF OUR REGISTRATION WITHDRAWAL THEREBY ACTED IN THE MANNER DETRIMENTAL TO THE INTEREST OF THE MCX WE FILED DETAILED REPLY ON THE MATTER EXPLAINING THE REASON FOR DELAY IN INTIMATING MCX AND ALSO ARGUED THE MATTER BEFORE THE OFFICIALS OF MCX. MCX VIDE ITS ORDER DATED DECEMBER 27, 2018 IMPOSED THE PENALTY OF RS.50,000/- ON MOCBPL. WE HAVE PAID THE PENALTY AMOUNT. Summary: AN ORDER DATED FEBRUARY 22, 2019 PASSED BY WTM AGAINST ONE OF OUR WHOLLY OWNED SUBSIDIARY COMPANY I.E. MOTILAL OSWAL COMMODITIES BROKER PRIVATE LIMITED ("MOCBPL"), WHEREIN SEBI HAD HELD THAT MOCBPL IS NOT A FIT AND PROPER PERSON TO HOLD, DIRECTLY OR INDIRECTLY, THE CERTIFICATE OF REGISTRATION AS COMMODITY BROKER. IN THIS REGARD, MOCBPL HAD FILED AN APPEAL BEFORE HON'BLE SECURITIES APPELLATE TRIBUNAL ("SAT") CHALLENGING THE SAID ORDER OF WTM OF SEBI. HON'BLE SAT HAS ALLOWED MOCBPL'S APPEAL AND REMANDED THE MATTER BACK TO SEBI FOR DECIDING AFRESH. PURSUANT TO SAT ORDER WTM OF SEBI PASSED ORDER DATED NOVEMBER 29, 2022, BY DEBARRING MOCBPL FROM MAKING A FRESH APPLICATION SEEKING REGISTRATION, BEFORE SEBI, FOR A PERIOD OF 3 (THREE) MONTHS FROM THE DATE OF THE ORDER. MOCBPL HAS FILED AN APPEAL AGAINST SAD ORDERS BEFORE SECURITIES APPELLATE TRIBUNAL AND THE SAME IS CURRENTLY PENDING

Allegations: SEBI VIDE NOTICE DATED MAY 09, 2019, UNDER RULE 4 (1) OF SEBI (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES , 2005 INQUIRED INTO ALLEGED VIOLATION OF THE PROVISIONS OF SEBI CIRCULAR NO. SMD/SED/CIR/93/23321 DATED NOVEMBER 18, 1993. SEBI CONDUCTED INSPECTION OF MOFSL TO EXAMINE WHETHER MOFSL HAS COMPLIED WITH REQUIREMENTS OF SEBI CIRCULAR DATED NOVEMBER 18, 1993. INSPECTION TEAM OBSERVED THE MOFSL HAS MIS-UTILISED THE FUNDS OF CLIENT'S CREDIT BALANCE LYING WITH THE BROKER FOR THE SETTLEMENT OBLIGATION OF THE DEBIT BALANCE CLIENTS. Status: Final Sanction Detail: MOFSL HAS FILED ITS REPLY DATED OCTOBER 03, 2019. SEBI HAS PASSED ADJUDICATION ORDER DATED 28TH FEBRUARY, 2020 AGAINST MOFSL AND IMPOSED A MONETARY PENALTY OF RS. 17,00,000/- TO BE PAID WITHIN 45 DAYS OF ORDER ISSUED. WE HAVE PAID PENALTY TO SEBI AND THE MATTER IS CLOSED. Summary: SEBI CONDUCTED INSPECTION OF MOFSL TO EXAMINE WHETHER MOFSL HAS COMPLIED WITH REQUIREMENTS OF SEBI CIRCULAR DATED NOVEMBER 18, 1993. INSPECTION TEAM OBSERVED THE MOFSL HAS MIS-UTILISED THE FUNDS OF CLIENT'S CREDIT BALANCE LYING WITH THE BROKER FOR THE SETTLEMENT OBLIGATION OF THE DEBIT BALANCE CLIENTS. MOFSL IN ITS REPLY SUBMITTED THAT INSPECTION TEAM HAS NOT INCLUDED MARGIN REQUIREMENTS OF CLIENTS WHILE CALCULATING TOTAL CREDITOR BALANCE AND HENCE THE SAME IS ON HIGHER SIDE AND THAT THERE WOULD BE CONSIDERABLE DECREASE IN THE FIGURES IF THE MARGIN DUES ARE DEDUCTED FROM CREDITOR BALANCE. SEBI DID NOT ACCEPT ARGUMENT OF THE MOFSL SINCE THE MARGINS COLLECTED FROM CLIENTS ARE IN THE FORM OF FUNDS AND/OR SECURITIES. THE FUND PORTION OF THE MARGIN COLLECTED FROM THE CLIENT HAS ALREADY BEEN CONSIDERED WHILE CALCULATING CLIENT DEPOSITS WITH THE BROKER. IN VIEW OF THE ABOVE SEBI CALLED UPON TO SHOW CAUSE AS TO WHY AN INQUIRY SHOULD NOT BE HELD AGAINST MOFSL IN TERMS OF RULE 4 OF THE ADJUDICATION RULES READ WITH SECTION 23 OF THE SCRA 1956 AND WHY PENALTY SHOULD NOT BE IMPOSED ON TERMS OF THE PROVISIONS OF SECTION 23D OF THE SCRA 1956. MOFSL HAS FILED ITS REPLY DATED OCTOBER 03, 2019. SEBI HAS PASSED ADJUDICATION ORDER DATED 28TH FEBRUARY, 2020 AGAINST MOFSL AND IMPOSED A MONETARY PENALTY OF RS. 17,00,000/- TO BE PAID WITHIN 45 DAYS OF ORDER ISSUED. WE HAVE PAID PENALTY TO SEBI AND THE MATTER IS CLOSED.

Allegations: SEBI HAS INITIATED ADJUDICATION VIDE LETTER DATED DECEMBER 11, 2019, FOR TRANSACTIONS OF A CUSTOMER IN THE SCRIP OF ZYLOG SYSTEMS LIMITED. MOFSL HAS ACCEPTED THE ORDER FOR TRADING IN ZSL FROM PERSON OTHER THAN CLIENT WITHOUT ANY AUTHORITY I.E. THE TRADE ORDER WAS ISSUED BY MR. P SRIKANTH, HUSBAND OF CLIENT, MRS. SRIKANTH SRIPRIYA INSTEAD OF CLIENT HERSELF. WITH REGARD TO AFORESAID, MOFSL SENT THE REPLY TO SEBI ON DECEMBER 30, 2019 THEREBY DENYING THE SAID ALLEGATIONS AND TO UNDERSTAND THE REASONS FOR ISSUANCE OF SAID NOTICE WITHOUT ANY FACTUAL BACKGROUND. MOFSL SENT REPLY TO SEBI ON MAY 20, 2020. FURTHER OUR OFFICIALS ATTENDED THE VIDEO HEARING WITH SEBI OFFICIALS ON 26TH MAY, 2020. SEBI ISSUED AN ORDER DATED 28TH MAY, 2020 WHEREBY THEY DISPOSED-OF THE SCN WITHOUT ANY PENALTY OR ACTION. THE MATTER IS DISPOSED OFF. Status: Final Sanction Detail: SEBI ISSUED AN ORDER DATED 28TH MAY, 2020 WHEREBY THEY DISPOSED-OF THE SCN WITHOUT ANY PENALTY OR ACTION. THE MATTER IS DISPOSED OFF. Summary: SEBI HAS INITIATED ADJUDICATION VIDE LETTER DATED DECEMBER 11, 2019, FOR TRANSACTIONS OF A CUSTOMER IN THE SCRIP OF ZYLOG SYSTEMS LIMITED. MOFSL HAS ACCEPTED THE ORDER FOR TRADING IN ZSL FROM PERSON OTHER THAN CLIENT WITHOUT ANY AUTHORITY I.E. THE TRADE ORDER WAS ISSUED BY MR. P SRIKANTH, HUSBAND OF CLIENT, MRS. SRIKANTH SRIPRIYA INSTEAD OF CLIENT HERSELF. WITH REGARD TO AFORESAID, MOFSL SENT THE REPLY TO SEBI ON DECEMBER 30, 2019 THEREBY DENYING THE SAID ALLEGATIONS AND TO UNDERSTAND THE REASONS FOR ISSUANCE OF SAID NOTICE WITHOUT ANY FACTUAL BACKGROUND. MOFSL SENT REPLY TO SEBI ON MAY 20, 2020. FURTHER OUR OFFICIALS ATTENDED THE VIDEO HEARING WITH SEBI OFFICIALS ON 26TH MAY, 2020. SEBI ISSUED AN ORDER DATED 28TH MAY, 2020 WHEREBY THEY DISPOSED-OF THE SCN WITHOUT ANY PENALTY OR ACTION. THE MATTER IS DISPOSED OFF.

Allegations: SEBI HAS ISSUED ORDER BEARING NO. ORDER/BM/LD/2022-23/16301 DATED 29TH APRIL, 2022 ON JOINT INSPECTION CONDUCTED WHEREIN CERTAIN DISCREPANCIES WERE FOUND IN ROUTINE COURSE OF BUSINESS AND SEBI IMPOSED PENALTY OF INR 25,00,000 (RUPEES TWENTY FIVE LAKHS ONLY) ON MOFSL. THE SAID PENALTY AMOUNT WAS PAID BY MOFSL ON 23RD MAY, 2022. Status: Final Sanction Detail: SEBI IMPOSED PENALTY OF INR 25,00,000 (RUPEES TWENTY FIVE LAKHS ONLY) ON MOFSL. THE SAID PENALTY AMOUNT WAS PAID BY MOFSL ON 23RD MAY, 2022. Summary: SEBI HAS ISSUED ORDER BEARING NO. ORDER/BM/LD/2022-23/16301 DATED 29TH APRIL, 2022 ON JOINT INSPECTION CONDUCTED WHEREIN CERTAIN DISCREPANCIES WERE FOUND IN ROUTINE COURSE OF BUSINESS AND SEBI IMPOSED PENALTY OF INR 25,00,000 (RUPEES TWENTY FIVE LAKHS ONLY) ON MOFSL. THE SAID PENALTY AMOUNT WAS PAID BY MOFSL ON 23RD MAY, 2022.