Sebi sends showcause notices to 15 entities for violations

Markets regulator Sebi today issued showcause notices to 15 entities for allegedly violating certain market norms by owning shares more than the prescribed threshold in Pune Stock Exchange(PSE).
It is alleged that five persons associated with Prabodh Artha Wardhini Pvt Ltd (PAWPL) held 14.36 per cent shares in Corporatization and Demutualization process of PSE, while eight entities linked with Vraj Finance were together holding 5.90 per cent shares of the stock exchange.
In two separate showcause notices issued today, Sebi has sought explanations from the entities concerned.
Under the Securities Contracts (Regulation)(Stock Exchange and Clearing Corporations) Regulations, no person in India shall at any time, directly or indirectly, either individually or together with persons acting in concert acquire or hold over 5 per cent share capital in a recognised stock exchange.

"You are, therefore, called up to showcause as to why an inquiry should not be held against you...," Sebi said in the similar worded circulars.
According to the notices issued by the Securities and Exchange Board of India, PAWPL is registered with Sebi as a member of NSE, BSE and Pune Stock Exchange. On the other side, Viraj Finance is a Sebi registered sub-broker.
Sebi said, the entities should reply to the showcause notice within 14 days.