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Sebi fines Prime Broking Company for violating broker norms

Press Trust of India  |  New Delhi 

Markets regulator has imposed a penalty of Rs 3 lakh on Prime Broking Company for retaining the of Aanjaneya Lifecare (now known as Dr Datsons Labs Ltd) in respect of three clients for more than two quarters.

A probe conducted by found that Prime Broking was holding 8.75 per cent stake in Aanjaneya Lifecare on behalf of its three clients -- Kannan Vishwanath, CSA Holdings and CLT for more than two quarters -- (September and December) in 2012-13.


The of these clients were held as collateral and not released to them as they owed Prime Broking for margins and receivables, the regulator noted.

Accordingly, the accounts were not settled once in a quarter as required, Securities and Exchange Board of (Sebi) said in an order dated July 13.

The regulator has levied the fine on the broker "for the retention of of Aanjaneya Lifecare of three clients without furnishing the periodical statement of securities account and without offering an explanation regarding retention of securities and the details of pledge, for more than two quarters".

By indulging in such activity, it has violated the provisions of Sebi's stock broker regulation.

In a separate order, has slapped a fine of Rs 3 lakh on Beardsell Ltd for not making the necessary disclosures within the prescribed time frame under SAST (Substantial Acquisition of and Takeovers) norms.

"I am convinced that the noticee has failed to make the necessary disclosures within the prescribed time period required under ... SAST Regulations for the period 2002, 2007 and 2009," Adjudicating Officer Suresh B Menon said in an order.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 14 2017. 13:57 IST
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