Capital markets regulator Sebi on Wednesday imposed a penalty of Rs 2 lakh on CDSL Ventures Ltd, a KYC registration agency, over delay in submission of the audit report.
In addition, the entity failed to maintain segregation between cyber security services and infrastructure of itself and depository CDSL, which hit its KYC operations, according to an order passed by the regulator.
The Securities and Exchange Board of India (Sebi) inspected CDSL Ventures Ltd to examine its compliance with the KYC Registration Agency (KRA) regulations.
The period covered in the inspection was from January 2021 to December 2022.
Based on the findings of the inspection, Sebi found certain non-compliances with KRA Regulations.
In its order, Sebi found that CDSL Ventures did not submit the system audit report to it within the stipulated time period.
Sebi has mandated that the system audit should be conducted once in a “financial year” instead of a “calendar year”.
The entity had submitted the system a
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