Sebi settles case with broker Manubhai Mangaldas Securities

Capital market regulator Sebi today settled a matter of alleged violation of stock broker norms against Manubhai Mangaldas Securities after it made a payment of Rs 6.80 lakh as settlement fee.
The broker had allegedly not maintained a separate demat securities account for proprietary trades and client trades, as mandated under market regulator's norms.
It was observed that the broker's own shares were maintained along with its clients shares in a common demat account.
"...It is hereby ordered that this consent order disposes of the said Adjudication Proceedings pending in respect of the noticee (Manubhai Mangaldas Securities)," the Securities and Exchange Board of India (Sebi) said in the order.

While the proceedings were in progress, the stock broker under Sebi's consent mechanism had proposed Rs 6.80 lakh to settle the case against it.
Under the mechanism, entities facing proceedings from Sebi, pay settlement charges, as also legal and administrative expenses, without admission or denial of guilt.
Thereafter, Sebi's High Powered Advisory Committee (HPAC) recommended that the matter may be settled on the payment of the amount proposed following which the broker remitted the amount earlier this month.
Sebi noted that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by Manubhai Mangaldas Securities is found to be untrue.