Securities and Exchange Board of India (SEBI) has issued a formal censure to Alankit Assignments Ltd, a Qualified Registrar and Transfer Agent (QRTA), following an inspection that covered the period from 1 April 2021 to 19 September 2022.
The regulator decided against the one‑year ban on taking new clients or assignments that the Designated Authority had recommended. SEBI said adding such a ban to the Rs 10 lakh fine already imposed in separate proceedings would be harsh and disproportionate.
In its order, SEBI’s Whole Time Member Amarjeet Singh stated that a prohibition would be excessive. He concluded that a regulatory censure was the appropriate sanction for the case.
The final order listed five main categories of violations. These included problems with NISM certification of staff, lack of signature cards, delays in processing 54 demat requests, issues with transfer re‑lodgement requests, and incorrect reporting in half‑yearly statements.
A total of 24 employees did not hold NISM certification at any point during the inspection period, and 10 were un‑certified at the time of the audit. SEBI highlighted that certification protects investors, and correcting the issue later does not erase the violation.
Alankit also failed to maintain signature cards for many physical folios. SEBI acknowledged that missing specimen signatures is a common industry problem and noted the company’s efforts to obtain records from issuers. The shortfall improved in later inspections.
The regulator found that 54 demat requests were processed beyond the required 15‑day window. Alankit argued the delays were only one to two days and represented a small fraction of total requests. SEBI accepted this as a mitigating factor but still ruled the timeline was breached.
For transfer re‑lodgement, SEBI upheld violations in seven out of fourteen cases, showing partial compliance.
In its assessment, SEBI stated the breaches were operational and technical, with no evidence of fraud or deliberate misrepresentation. It also cited improvements in later inspections, the absence of investor loss, the impact of COVID‑19 during the audit period, and the existing Rs 10 lakh fine.
Overall, the censure signals that SEBI will monitor Alankit closely while allowing it to continue operations, provided it addresses the highlighted deficiencies promptly.