- Religare Securities Limited (“RSL”) (“Research Entity”) is into the business of Stock Broking, Depository Participant, Mutual Fund Distributor, Corporate Agent for insurance distribution and Sub-Syndicate for public issue of securities.
Disclaimer: This report/analysis / call / score card (by whatever name called) (hereinafter collectively "Research") has been prepared/ made pursuant to Research made by the Research Analysts is neither a solicitation nor a recommendation to buy/sell any security (as defined under section 2(h) of Securities Contracts (Regulation) Act, 1956). It does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (prohibitions to investments due to law / jurisdiction issues etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. RSL and its associates, subsidiaries and associated companies, their directors and employees and/or its associates (hereinafter referred as Religare) will not treat recipients as customers/ clients by virtue of their receiving this report. This Research may have been prepared/ made based on the analysis of data available publicly and/or other sources believed to be reliable. Religare, does not, accepts any liability arising from the use of this information.
The user assumes the entire risk of any use made of this report/ analysis/ call. Price and value of the securities referred to in this Research call may go up or down. Past performance is not a guide for future performance. Research based on technical analysis centers on studying charts of price movement and trading volume, as opposed to focusing on fundamentals and as such, may not match with Research based on fundamentals.
Opinions expressed are our current opinions as of the date appearing on this Research only. We do not undertake to advise you as to any change of our views expressed in this Research. Research reports / recommendations may differ between RSL’s RAs and/or RSL’s associate companies on account of differences in research methodology, personal judgment and difference in time horizons for which recommendations are made. User should keep this risk in mind and not hold RSL , its employees and associates responsible for any losses, damages of any type what so ever. or
RSL and its associates or employees may: (a) from time to time, have long or short positions in, and buy or sell the investments in / securities of company (ies) mentioned herein or (b) be engaged in any other transaction involving such investments / securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company (ies) discussed herein or act as advisor or lender / borrower to such company (ies) these and other activities of RSL and its associates or employees may be construed as potential conflict of interest with respect to any recommendation and related information and opinions. Without limiting any of the foregoing, in no event shall RSL and its associates or employees or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind.
Disciplinary History in brief - Following proceedings were initiated against RSL by Securities and Exchange Board of India (“SEBI”).
SEBI in the matters of IFSL Limited, Mega Corporation Limited, Karuna Cables Limited and Millenium Cybertech Limited, issued ad interim orders pursuant to the said orders, the SEBI had restrained RSL, among other stock brokers from buying, selling or dealing in the specified scrips of the companies mentioned above, directly or indirectly, on behalf of certain promoters, directors and clients specified by the SEBI Subsequently, SEBI disposed off the proceedings against RSL in matter of IFSL; by consent orders disposed of adjudication proceedings in relation to Mega Corporation Limited and Karuna Cables Limited with SEBI and issued an administrative warning in the matter of Millenium Cybertech Limited and later on vacated the direction issued in millennium cybertech. In similar nature of cases, SEBI through an ad interim order dated January 17, 2007, restrained RSL from buying, selling or dealing directly or indirectly in the shares of Nissan Copper Limited, until the receipt of further orders from SEBI. However, SEBI vide its order dated February 20, 2009 revoked the directions passed earlier on the merits of the case. The SEBI has also in the matter of Ind Tra Deco Limited, issued an ad interim order dated October 5, 2005 pending investigation, restraining RSL, among other stock brokers and the promoters and directors of Ind Tra Deco Limited from buying, selling or dealing in the securities of/ in the scrip of Ind Tra Deco Limited, directly or indirectly, from October 5, 2005 until the receipt of further orders, However, SEBI vide its order dated September 18, 2009 revoked the directions passed earlier on the merits of the case.
- Pursuant to an inspection of books and records of the broking division of RSL for the period January 2004 to December 2004, SEBI has appointed an adjudicating officer vide its letter dated June 24, 2008. RSL. Based on submissions and presentations by RSL , the adjudicating officer vide its order dated December 22, 2008 disposed of the proceeding by SEBI.
- Pursuant to an inspection of books and records of the PMS division of RSL for the period September 2004 to December 2005, SEBI has initiated an enquiry officer proceeding vide its letter dated November 8, 2007. Subsequently SEBI has issued a show cause notice dated October 22, 2009 under Regulation 28 of SEBI (Intermediaries) Regulations 2008 as to why penalty, as considered appropriate by the Designated Member, should not be imposed on RSL for the alleged violation of the Code of Advertisement and SEBI circulars no. 1(93-94) dated October 20, 1993 and no. IMD/PMS/CIR/1/21727/03. As the certificate of registration under the Portfolio Manager Regulations was transferred to RAMCL from RSL, RAMCL made an application for consent order dated January 12, 2010. SEBI. RAMC then again filed application for consent order with revised terms of settlement on May 21, 2010. SEBI vide its consent order dated September 27, 2010 has disposed of the proceedings initiated vide Show Cause Notice dated October 22, 2009.
- SEBI vide its letter dated November 30, 2009 initiated adjudicating proceedings against RSL for the alleged violation of the SEBI Act, the Depositories Act, 1996, the Stock Broker Regulations, the Depository Regulations and certain SEBI circulars.. SEBI vide its Order dated November 10, 2010 imposed total penalty of Rs 3 Lacs on certain violations observed. RSL on January 17, 2011 has filed an appeal with The Securities Appellate Tribunal (SAT) against the order of adjudication officer. SAT had set aside the impugned order in this regard vide its order dated June 16, 2011.
- SEBI has observed orders on behalf of client resulted into artificial demand in the scrip Nandan Exim Ltd during the period Sep 2006- Nov 2006. SEBI through its letter dated June 15, 2010 has warned RSL on the trading pattern of one client in the scrip Nandan Exim Ltd.
- SEBI vide its letter dated May 24, 2011 has initiated a proceeding against RSL and has issued a show cause notice under regulation 25 of SEBI (Intermediaries) Regulations, 2008 in the matter of fraud committed by a relationship manager of Citibank. RSL has replied the same on June 20, 2011. SEBI vide its letter dated June 11, 2012 has disposed off the proceedings against RSL without imposing any penalty.
- SEBI vide its letter dated June 20, 2011 has initiated a proceeding against RSL and has issued a show cause notice under regulation 25 and 38 of SEBI (Intermediaries) Regulations, 2008 in the matter of trading by client Ms. Pooja Menghani. SEBI vide intimation dated December 31, 2012 has rejected RSL consent application dated August 11, 2011 in the matter. SEBI has vide its letter dated November 29, 2012 warned RSL in the matter of trades carried out by Gajinder Paul Dhody. It was observed by SEBI that RSL has failed to exercise due diligence and allowed client to access securities market.
- Pursuant to the limited purpose inspection conducted by SEBI in July, 2010 in relation to the investor grievances, SEBI vide its letter dated November 21, 2012 advised RSL not to repeat the irregularities mentioned in the inspection report and to provide comments of the Board in relation to various corrective steps taken by RSL to reduce/disallow the investor grievances. RSL vide its letters dated December 12, 2012 & December 28, 2012 filed status of various steps taken by RSL to disallow/reduce investor’s grievance and comments of the Board in this regard as required by SEBI.
- SEBI has issued administrative warning to RSL vide its letter dated September 03, 2013 pursuant of inspection of books and records of Depository Participant operations conducted during 2012-13.
- Pursuant to the inspection of books and records of RSL conducted by SEBI for the period September 22, 2011 to February 15, 2012, SEBI vide its letter dated September 23, 2013 has issued administrative warning to be careful in future and improve compliance standards by specifying the rate and period of delayed payment charges in the policy and procedures for clients and any change in it should be intimated to client. SEBI has advised to take corrective steps in this regard. RSL has taken corrective steps in this regard.
- SEBI had carried out inspection of books and records of RSL during January 15, 16, 2013. Pursuant to the inspection, SEBI has issued administrative warning vide its letter dated March 28, 2014 to be careful in future and improve compliance standards to avoid recurrence of such instances, failing which appropriate action may be initiated in accordance with the provisions of SEBI Act 1992 and Regulations framed there under. RSL has been advised to take appropriate corrective steps to rectify the deficiencies observed in the inspection and submit an action taken report with SEBI within 30 days. RSL has also been advised to place the findings and deficiencies observed in the inspection, corrective steps taken, SEBI Warning letter in the immediate next meeting of the board of RSL and forward its comments on the corrective steps taken to SEBI within 30 days of immediate board meeting of RSL.
- SEBI has vide its letter dated November 12, 2013 forwarded a Show Cause Notice dated September 25, 2013 under Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by the Adjudication Officer) Rules, 1995 read with section 15-I of the SEBI Act, 1992 in the matter of Veritas (India) Limited. SEBI has observed the trading activity of client Jai Kishan Lakhmani in the scrip Veritas (India) Limited as fictitious as he was one of the top last traded price contributor during January 1, 2009 to March 31, 2012.. SEBI vide its order dated August 27, 2014 has levied a penalty of Rs. 8.00 lacs and Rs. 2.00 lacs under section 15HA and 15HB of SEBI Act 1992 respectively. RSL has filed an appeal against the order before Securities Appellate Tribunal.
List of Associates as per SEBI (Research Analysts) Regulations, 2014
- Religare Enterprises Limited
- Religare Commodities Limited,
- Religare Comtrade Limited
- Religare Share Brokers LTD,
- Religare Investment Advisors Ltd,
- Northgate Capital Asia India Limited,
- Religare Wealth Management Limited,
- Religare Trusty Company Private Limited.
- Religare Finvest Limited
- REL Infrafacilities Limited
- Religare Finance Limited
- Religare Capital Markets Limited
- Religare Health Insurance Company Limited
- Religare Arts Initiative Limited
- Religare Capital Markets (India) Limited
- RGAM Investment Advisers Private Limited
- RGAM Investment Advisers Private Limited
- Religare Commodity Broking Private Limited
- Religare Invesco Asset Management P Ltd
- Religare Credit Advisors LLP
- Cerestra Capital Advisors LLP
Statements on ownership and material conflicts of interest, compensation - RSL and Associates
Answers to the best of RSL’s knowledge and belief to questions/ statements for RSL and associates are No/ Nil except for the companies listed against specific question/ statement below
RSL or any of its associates has any financial interest in the subject company? Nature of Interest (if applicable), is given against the company’s name .
|| RSL or any of its associates, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance
|| RSL or any of its associates, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance?
|| RSL or any of its associates has received any compensation from the subject company in the past twelve months?
|| RSL or any of its associates has managed or co-managed public offering of securities for the subject company in the past twelve months?
|| RSL or any of its associates has received any compensation for brokerage services from the subject company in the past twelve months?
|| RSL or any of its associates has received any compensation for products or services other than brokerage services from the subject company in the past twelve months?
|| RSL or any of its associates has received any compensation or other benefits from the subject company or third party in connection with the research report?
|| RSL has been engaged in market making activity for the subject company?
For statements on ownership and material conflicts of interest , compensation for individual Research Analyst(s) (RA), please refer to each specific research report.