Sebi slaps Rs 5 lakh fine on stock broker for non-settlement of client accounts

Markets regulator Sebi Wednesday imposed a fine of Rs 5 lakh on stock broker Anugrah Stock & Broking Pvt Ltd for failing to settle the accounts of its clients.

The regulator had conducted inspection from April 11 to 13, 2017, to verify the compliance of regulatory provisions with respect to quarterly or monthly settlement of funds of its clients and the period covered under inspection was from year 2014-2015 till September 2016.

The Securities and Exchange Board of India (Sebi) found that Anugrah failed to settle accounts of its clients and thereby violated the regulator's circular dated December 3, 2009.

The non-settlement of funds and securities of inactive clients by the stock broker exposes the system to unauthorised trading. The circular intends to curb such possibilities, Sebi noted.

The contraventions in this case would attract monetary penalty, Sebi said and imposed a fine of Rs 5 lakh on the stock broker.

In a separate order, the regulator levied a total penalty of Rs 6 lakh on four designated employees of Kushal Tradelink Ltd for trading during the window closure period and by taking opposite position within 6 months from the earlier transaction.

By doing so, the employees violated code of conduct under the (Prohibition of Insider Trading) norms, the Sebi said.

The four are Mukeshsingh M Jagarval, Sweta Virendra Shah, Mittali Mukeshbhai Christachary, and Snehlata Rajendraprasad Tiwari, as per the Sebi order.