Arcadia Shares settles case with Sebi, pays Rs 5.65 lakh

Arcadia Shares & Stock Brokers today settled with Sebi a case related to alleged violation of stock broking norms by paying Rs 5.65 lakh.
Sebi initiated adjudication proceedings against Arcadia Shares for violating norms for stock brokers and sub-brokers by failing to exercise due skill, care and diligence in its broking business in execution of self-trades by its client in scrip of Kwality from December 10, 2009 to January 8, 2010.
While the adjudication proceedings were in progress, the stock broker had submitted an application proposing to settle the same, the Securities and Exchange Board of India (Sebi) said in an order.

The settlement terms as proposed by Arcadia Shares were placed before Sebi's High Powered Advisory Committee (HPAC) for recommendations.
The recommendations of HPAC were also approved by a panel of the whole time members of Sebi.
The regulator noted that since there was a delay in filing of the settlement application, the amount payable by Arcadia Shares was increased by a levy of the simple interest at 6 per cent per annum till the date of filing of application.

Earlier this month, the stock broker paid the settlement charge amounting to Rs 5.65 lakh following which Sebi settled the proceedings.

However, as per the regulator if any representation made by Arcadia Shares in the settlement proceedings is subsequently found to be untrue, enforcement actions can be initiated against the stock broker.
In a separate order, Nature Hue Chem settled with Sebi a case related to alleged disclosure lapses after paying Rs 2.25 lakh towards settlement.