Market regulator SEBI has issued an administrative warning to DAM Capital Advisors regarding certain operational deficiencies in its institutional broking business, the recently listed firm said in an exchange filing after market hours on Friday.
The Securities and Exchange Board of India (SEBI) sent the warning and deficiency letter on March 20, advising the company to be more vigilant in its operations. The letter was based on SEBI’s inspection conducted between February 1, 2024, and August 31, 2024—before the listing of DAM Capital’s equity shares.
The company stated that it has already rectified the identified issues and implemented necessary compliance measures to ensure adherence to regulatory norms. It also clarified that the SEBI letter does not impact its financials, operations, or other business activities.
“SEBI conducted a thematic inspection of the company in January 2025 for the period from February 1, 2024, to August 31, 2024, focusing on ‘Upstreaming and Downstreaming of Clients’ Funds,’” DAM Capital said in its filing.
Following a review of its responses, SEBI highlighted areas requiring improvement. These included delays in transferring client funds to the Clearing Corporation, certain brokerage amounts being credited directly to the company’s bank account instead of the designated settlement account, and reporting deficiencies in the segregation file, such as incorrect values and missing retention reason codes.
Shares of DAM Capital Advisors ended nearly 5 percent higher in Friday’s trade, closing at Rs 232 per share on the NSE, up 4.68 percent.
DAM Capital Advisors shares made their stock market debut in December 2024, listing at Rs 393 on the NSE, marking a premium of 39 percent over the issue price of Rs 283 per share.
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