KFin Technologies resolves RTA rule violation case with Sebi for Rs 88 lakh

KFin Technologies on Tuesday paid Rs 87.7 lakh to Securities and Exchange Board of India (Sebi) to settle a case related to alleged violation of regulatory norms related RTA regulations. The development came after KFin Technologies filed a settlement application in August 2024, requesting Sebi to settle the adjudication proceedings against the company.

KFin Technologies, which acts as a registrar to an issue and share transfer agent was under Sebi inspection for the period between February 1, 2023 and November 30, 2023 on charges that it failed to exercise due diligence while processing the request for dematerialization of shares.

The market watchdog issued a Show Cause Notice (SCN) to KFin on July 8, 2024 seeking its response as to why an inquiry should not be initiated against the company along with the imposition of a penalty.

KFin Technologies on August 19, 2024 filed a settlement application before Sebi, requesting for settlement of the proceedings.

Following the filing of a settlement application, Sebi’s Internal Committee (IC) recommended a settlement amount of Rs 87.75 lakh which was later endorsed by a High Powered Advisory Committee (HPAC) on June 5, 2025.

As per the settlement order, the markets watchdog will not initiate enforcement proceedings against KFin Technologies for the violations. However, Sebi retains the right to take further action if any misrepresentation is discovered or if the company breaches any terms of the settlement.

"The instant adjudication proceedings initiated against the applicant (KFin Technologies) vide SCN (show cause notice) dated July 8, 2024, are disposed of," Sebi's Adjudicating Officer Jai Sebastian said in the settlement order.

Shares of KFin Technologies today ended with sharp cuts of 5% at Rs 1,056.30 on the NSE. The stock has been a market laggard, falling 32% in 2025 so far. The smallcap stock has returned 5% over a 1-year period.

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