KFin Technologies has settled adjudication proceedings initiated by Sebi by agreeing to pay ₹87.75 lakh. The case concerned alleged lapses in due diligence and compliance under the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993.
The SEBI inspection, conducted from February 19-23, 2024, for the period February 1 to November 30, 2023, found that KFin Technologies failed to exercise due diligence while processing dematerialisation requests. The inspection report also stated that the company 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 circulars and master circulars.
Following a show-cause notice in July 2024, KFin Tech filed a settlement application in August 2024 to resolve the matter without prolonged litigation. Sebi’s internal committee recommended a settlement amount of ₹87.75 lakh, which the company agreed to.
The High-Powered Advisory Committee approved the settlement in its June 5, 2025 meeting, and Sebi’s panel of Whole Time Members confirmed the recommendation on August 8, 2025. KFin Technologies completed the payment on August 25, 2025, and the adjudication proceedings were disposed of.
Under Sebi’s settlement framework, parties can resolve cases without admitting or denying guilt, but Sebi retains the right to reopen the case if any representations made during the settlement are found to be incorrect.
