KFin Technologies settles case with Sebi; pays Rs 91.2 lakh

KFin Technologies on Friday settled with markets regulator Sebi a case pertaining to alleged flouting of rules governing Registrars to an Issue and Share Transfer Agents (RTA/STA) on payment of Rs 91.2 lakh as settlement amount.

This came after KFin proposed to settle the pending proceedings through a settlement order ''without admitting or denying the findings''.

In its settlement order, Sebi said ''the instant adjudication proceedings initiated against KFin vide SCN (show cause notice) dated March 31, 2022 is disposed of.'' The Securities and Exchange Board of India (Sebi) had conducted an inspection of the books of accounts and other records of KFin to verify whether its books of accounts, records and other documents were being maintained as per the regulatory norms. The period covered under the inspection was from January to December 2019.

In its probe, Sebi found that KFin allegedly made a delay in processing of transfer and transmission requests.

Also, Sebi noted alleged discrepancies in the issue of duplicate share certificates by KFin and it allegedly misrepresented facts to the regulator regarding availability of specimen signatures of shareholders.

Through such acts, KFin allegedly violated code of conduct prescribed under RTA/STA rules and LODR (Listing Obligations and Disclosure Requirements) rules.

Pursuant to inspection, a show cause notice was issued to KFin in March this year.

Pending adjudication proceedings, KFin filed a settlement application with Sebi to settle the case. The regulator recommended the settlement of instant proceedings upon payment of Rs 91.2 lakh.

After this, the company remitted the amount and settled the case with the capital markets watchdog.