KFin Tech settles case with Sebi for Rs 87.75 Lakh

KFin Technologies has settled adjudication proceedings initiated by Sebi by agreeing to pay Rs 87.75 lakh. The case pertained to alleged lapses in due diligence and compliance requirements under the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993.

The market regulator had conducted an inspection of KFin Technologies between February 19-23, 2024, for the period from February 1 to November 30, 2023. The inspection report alleged that the company failed to exercise due diligence while processing requests for dematerialisation of shares and did not mark over 17.9 lakh folios without PAN details and 17.7 lakh folios without bank account details for enhanced due diligence as required under Sebi’s circulars and master circular.

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Following the issuance of a show-cause notice in July 2024, KFin Tech filed a settlement application in August 2024, seeking to resolve the matter without prolonged litigation. The internal committee of Sebi initially recommended an indicative amount of Rs 87.75 lakh under the settlement framework, which was later agreed upon by the company.

“The High-Powered Advisory Committee, in its meeting held on June 5, 2025, recommended that the case may be settled upon payment of Rs 87,75,000 (Rupees eighty-seven lakh seventy-five thousand only) as the settlement amount,” the order stated.

The recommendations were approved by Sebi’s panel of Whole Time Members on August 8, 2025, and the company confirmed payment on August 25, 2025. Consequently, the adjudication proceedings were disposed of by Sebi.

Under the settlement proceedings parties settle case with Sebi, without admitting or denying the guilt. However, Sebi retains the right to reopen the case if representations made during the settlement process are found to be incorrect.Moneycontrol had reported that number of settlement applications and amount of settlement has drastically gone up in financial year ended March 31st, 2025.