RKSV Securities India settles case with Sebi, pays Rs 1.13 crore

Brokerage firm RKSV Securities India, also known as Upstox, has reached a settlement with the Securities and Exchange Board of India (Sebi) regarding an alleged violation of regulatory norms. As part of the settlement, the company has paid a fee of Rs 1.13 crore.

The settlement was reached with the condition that RKSV Securities India neither admits nor denies the findings of facts and conclusions of law in the case. Sebi's Adjudicating Officer Barnali Mukherjee issued the settlement order, disposing of the adjudication proceedings initiated against the company based on a show-cause notice dated January 25, 2022.

Background

The notice alleged a violation of Sebi's Market Intermediaries Regulation and Supervision Department (MIRSD) Circular dated December 3, 2018, which pertains to cyber security and cyber resilience framework for stock brokers and depository participants. 

The circular mandates stockbrokers to maintain robust cyber security and cyber resilience frameworks to protect data integrity and privacy.

Following the issuance of the show cause notice, RKSV Securities India filed a settlement application with Sebi and made a presentation on cyber security policies before Sebi's High Powered Steering Committee on Cyber Security (HPSC-CS). 

After responding to queries raised by HPSC-CS, the committee recommended concluding the matter on May 15, 2023, with the payment of Rs 1.13 crore, which the applicant duly paid to settle the case.

(With PTI inputs)