SBICAP Trustee Settles SEBI Case Over Lapses in JM Financial ARC NCD Issuances, Pays ₹23.45 Lakh

SBICAP Trustee Company Limited, a SEBI-registered debenture trustee, has settled adjudication proceedings over lapses in two JM Financial Asset Reconstruction Company NCD issuances by paying Rs 23.45 lakh without admission of liability.

The allegations against SBICAP, inter alia, pertained to failure to create encumbrance on the security receipts through the depository system and lack of due diligence in obtaining necessary documents in respect of the security receipts offered as security by JMFARCL.

A show cause notice was issued, calling upon SBICAP to explain why an inquiry should not be held and penalty imposed. Pending adjudication, SBICAP filed a settlement application proposing to settle the proceedings without admission or denial of the findings of fact and conclusions of law.

The Internal Committee, after considering the material on record, recommended an indicative settlement amount of Rs 23,45,000 and advised submission of an action taken report against the officers-in-default.

SBICAP, thereafter, submitted revised settlement terms proposing to pay the said amount and made certain submissions with respect to action taken against the officers-in-default. The High Powered Advisory Committee agreed with the recommendations, and the Panel of Whole Time Members approved the settlement.

Upon payment of the settlement amount, SEBI disposed of the adjudication proceedings.