SEBI adjudicates Jainam Broking over alleged client fund misuse

It outlines the specific allegations, the company's responses, and the procedural history of the inquiry.

Who it concerns: Jainam Broking Limited (PAN: AABCJ3918N)

What SEBI found or ordered

• SEBI conducted inspections for periods April 2021–Sept 2022 and Nov 2022–Nov 2023.
• Allegations include misuse of client funds, funding clients beyond T+2+5 days, and KYC/KRA process failures.
• SEBI observed a difference of Rs. 50,88,170/- in reported bank balances as on 30.09.2022.
• Allegations include mismatches in email/mobile numbers, incorrect reporting of brokerage income, and cyber-security non-compliance (e.g., lack of STQC certifications, VAPT, and CERT-IN registration).
• SEBI alleged the company used client bank accounts for purposes other than specified.
• The company accepted the allegations during the hearing on July 31, 2026, and stated corrective steps were taken.
• The order is an adjudication proceeding under Section 15-I of the SEBI Act and Section 23-I of the SCRA Act.

Also in the document

• The company is registered as a stock broker with BSE, NSE, MCX, NCDEX, and as a Depository Participant at CDSL.
• The company argued that some 'funding' instances were minor service charges (under Rs. 500) or technical errors, not exchange pay-in obligations.
• The company claimed certain ledger mismatches involved institutional/custodian clients or its own PMS code, which it argued should not be reported under Enhanced Supervision.