Breach of stock broker norms: HSBC InvestDirect settles case with Sebi

The regulator had initiated the proceedings against the brokerage firm under the Sebi Regulations in July 2009 for the alleged violation of stock brokers norms in the matter of Adani Exports

HSBC InvestDirect Securities has settled proceedings with markets regulator Sebi in connection with alleged violation of stock broker norms on payment of over Rs 33 million towards settlement charges.

Sebi agreed to settle proposed adjudication proceedings in the case after it was approached by HSBC InvestDirect Securities (India) Ltd with a plea under the settlement regulations "without admitting or denying the findings of fact and conclusion of law".

"The proceedings under Sebi (Intermediaries) Regulations, 2008 for the defaults...are settled...and Sebi shall not initiate any enforcement action against the applicant (HSBC InvestDirect) for the said defaults," Sebi said in an order passed today.

The regulator had initiated the proceedings against the brokerage firm under the Sebi (Intermediaries) Regulations in July 2009 for the alleged violation of stock brokers norms in the matter of Adani Exports.

Pending adjudication proceedings, HSBC InvestDirect (earlier known as IL&FS Investmart Securities) had offered to settle the case on payment of over Rs 3 as settlement charges.

Thereafter, Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of the amount. This was also approved by Sebi's panel of whole-time members, following which the the brokerage firm remitted the amount.

Accordingly, Securities and Exchange Board of India (Sebi) has disposed of the adjudication proceedings initiated against HSBC InvestDirect.

It further said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by it is found to be untrue.