Sebi cancels Inter Corporate Financiers and Consultants' registration

Markets regulator Sebi on Tuesday cancelled the registration of merchant banker Inter Corporate Financiers and Consultants Ltd for not paying registration fees.

Sebi noted that the firm violated Sebi (Merchant Bankers) Regulations norms on account of non-payment of registration fees for the block May 24, 2014 to May 23, 2017.

Referring to the merchant bankers' norms, Sebi said the provisions provide that where a merchant banker fails to pay the annual fees, Sebi may suspend the registration certificate, whereupon the merchant banker shall cease to carry on any activity as a merchant banker for the period during which the suspension subsists.

"Accordingly, as per the ...provisions, the consequence of failure to pay fees would be the suspension of the certificate of registration resulting in a cessation of business as a merchant banker for the Noticee (Inter Corporate Financiers and Consultants)," Sebi said.

Through a separate order, Sebi levied a fine of Rs 5 lakh on M G Capital Services Ltd, a member broker of the National Stock Exchange, for violating Stock Brokers and Sub Brokers Regulations.

Sebi said that Rishabh Shares and Securities was a registered sub-broker of MG Capital Services.

It was found that MG failed to segregate transactions of its own clients and that of Rishabh Shares'.

Among other violations, MG Capital had allowed overexposure to Rishabh Shares, and there was no registration of clients of Rishabh Shares.

Besides, it also did not enter into broker-sub broker-client agreement.