Orbis Financial Corporation Ltd, a custodian, has paid Rs1.59 crore to settle issues that came up during an inspection conducted by market regulator Securities and Exchange Board of India (SEBI). In an order, Amar Navlani, adjudicating officer (AO) of SEBI, passed the settlement order stating that the market regulator will not initiate any other enforcement action against Orbis Financial Corporation, the custodian, for the violations mentioned in the show-cause notice (SCN). According to the SCN, Orbis Financial Corporation did not maintain proper software for physical securities, thus allowing unauthorised persons to access the vault. The custodian also submitted incorrect quarterly reports during FY20-21 and FY21-22 and made under-payment to SEBI for FY21-22. SEBI observed a delay by Orbis Financial Corporation in processing corporate actions, non-reporting of short sale transactions and failure by the custodian to update the operations manual. The market regulator then issued an SCN to Orbis Financial Corporation. However, on 27 December 2023, the custodian submitted a settlement application without admitting or denying of the findings of fact and conclusions of law.

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