Settlement Order
KFin Tech settles case over due diligence with SEBI, pays INR 8.78 mln
This story was originally published at 15:55 IST on 26 August 2025
Register to read our real-time news.Informist, Tuesday, Aug. 26, 2025
NEW DELHI - KFin Technologies Ltd. has settled a show cause notice issued by the Securities and Exchange Board of India for absence of due diligence in certain aspects of its activities as a SEBI-registered registrar to an issue and share transfer agent following an inspection by the market regulator. The company paid INR 8.78 million to settle the case.
As per the settlement order issued by SEBI Tuesday, the market regulator said it had inspected KFin Technologies in the February to November 2023 period. The inspection report findings were communicated to KFin Technologies in March 2024 and after receiving the response from the company SEBI had prepared a post inspection analysis report. On the basis of this report, SEBI issued a show cause notice to KFin Technologies in July 2024 alleging breach of specific rules meant for registrar and transfer agents.
SEBI alleged KFin Technologies had failed to exercise due diligence while processing requests for dematerialisation of shares. SEBI also alleged the company failed to mark folios not having PAN (Income Tax permanent account number) details or bank accounts for enhanced due diligence.
The company chose not to contest the show cause notice and instead applied for settling the case under SEBI's settlement of proceedings regulations in August 2024. Tuesday, shares of the company closed at INR 1,054.10 on the National Stock Exchange, down 5%. End
Reported by Rajesh Gajra
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
