DAM Capital Advisors Ltd disclosed on Friday that it 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, followed a thematic inspection focused on “Upstreaming and Downstreaming of the clients’ fund” conducted in January 2025.
The shares of DAM Capital Advisors Ltd closed on Friday on the NSE at ₹232 up by ₹10.38 or 4.68 per cent.
SEBI identified several compliance shortcomings during its inspection of activities between February and August 2024, prior to DAM Capital’s listing. 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.
The company stated in its regulatory filing that it has already implemented necessary compliance measures to address these issues and ensure full adherence to applicable requirements. DAM Capital maintains that the warning will have “no impact on financial, operation or other activities” of the company.
