DAM Capital Advisors Ltd revealed on Friday that it had received an administrative warning from the Securities and Exchange Board of India (SEBI) regarding operational issues in its institutional broking operations. The warning, issued on March 20, 2025, came after a thematic inspection focused on “Upstreaming and Downstreaming of the clients’ fund” that was conducted in January 2025.
At the close of trading on Friday, the shares of DAM Capital Advisors Ltd on the NSE were at ₹232, up by ₹10.38 or 4.68 per cent.
During its inspection of activities between February and August 2024, prior to DAM Capital’s listing, SEBI identified several compliance shortcomings. These included failure to upstream client funds to the Clearing Corporation within prescribed timelines, improper transfer of brokerage amounts directly from client accounts, and reporting deficiencies in segregation files.
In response to these findings, the company stated in its regulatory filing that it has already taken steps to address these compliance issues and ensure full adherence to applicable requirements. DAM Capital emphasized that the warning will not have any impact on the financial, operational, or other activities of the company.
Published on March 21, 2025.
