📌 At a glance:

• Entity: JRK Stock Broking Pvt. Ltd. (PAN: AABCJ8648K)
• SEBI Order Date: May 20, 2025
• Penalty: ₹1,00,000
• Inspection Period: April 2022 – November 2023
• Key Violations: Call recordings missing, NISM certification lapses, AP misconduct

📉 What triggered SEBI’s action?

SEBI conducted a thematic inspection of 7 Authorised Persons (APs) linked to JRK. What they found wasn’t pretty:

• ❌ No call recordings across all 7 APs — a direct violation of SEBI circulars aimed at curbing unauthorized trades
• ❌ No NISM certifications for any AP
• ❌ Terminals not at registered locations
• ❌ Client mobile numbers mapped to APs who were not family members
• ❌ In two cases, AP functions were handled by spouses who weren’t officially authorized

🔍 JRK’s Defense:

• “No investor complained. So we thought no recordings were okay.”
• “We assumed APs didn’t need NISM certificates based on earlier circulars.”
• “Family members were just… sitting near the terminals. Not actually placing orders.”

✅ They did take some corrective steps post-inspection, like deactivating certain APs, updating terminals, and enrolling APs into NISM Series VII.

📜 SEBI’s Final Findings:

• Violations of Clause 1, 2, and 5 of the Code of Conduct under the SEBI Stock Brokers Regulations
• Breach of multiple circulars including:
  • SEBI Circulars from 2017 & 2018 on call recordings
  • Circulars on terminal location compliance (2001)
  • Circulars on certification requirements (2010 Gazette)

👉 SEBI concluded that JRK’s issues were not minor hiccups but core regulatory lapses.

⚖️ Final Order:

• Penalty: ₹1,00,000 under Section 15HB of the SEBI Act
• Deadline: 45 days to pay or SEBI may initiate recovery actions

😂 EduInvesting Take:

• Call it “Operation Bhuwalka” — this one had it all: unqualified APs, terminal ghosts, and more family drama than a soap opera.
• JRK dodged a bullet with a light penalty, but SEBI’s message is loud: compliance isn’t optional just because no one’s watching.

Verdict: “Minor fine. Major embarrassment. And a masterclass on how not to run your AP network.”