Sebi fines 2 stock brokers Rs 35 lakh for violating securities market norms

Sebi Thursday imposed a penalty of Rs 20 lakh on Shilpa Stock Brokers for violating the code of conduct for share brokers and executing fraudulent trading in the futures and options (F&O) segment of NSE.

Based on the observation of National Stock Exchange (NSE), the regulator conducted an investigation into the dealings in the F&O segment of the bourse between February- March 2005.

During the probe, the regulator noted that the firm had executed reversal trade in the options segment in collusion with its clients and other stock brokers. The trades were non-genuine transactions, Sebi said in an order.

Such trades are in violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, Sebi noted.

Further, the firm also violated the provisions of Stock Brokers Regulations as it "failed to exercise skill, care, and diligence in the conduct of its business as a stock broker", Sebi said.

Accordingly, a fine of Rs 20 lakh has been levied on the stock broker.

Separately, the Securities and Exchange Board of India (Sebi) fined Vishvas Securities Rs 15 lakh for failing to provide information sought by the regulator.

The regulator had asked the firm to furnish information regarding acquisition of shares in Mefcom Agro Industries to ascertain any violation of the Substantial Acquisition of Shares and Takeovers (SAST) norms.

The "non-cooperative attitude of Vishvas Securities Ltd, hampered the investigation of Sebi", the regulator said.