Sebi slaps Rs 8 lakh fine on Inditrade Capital

Sebi today imposed a penalty of Rs 8 lakh on Inditrade Capital (formerly known as JRG Securities) for non-settlement of running accounts of the clients on a periodical basis under stock brokers' norm.
Under the norms, it is mandatory for all the brokers to settle the running accounts of the clients on a monthly/ quarterly basis. The move is aimed at instilling greater transparency and discipline in dealings between the clients and stock brokers.
Sebi Chief General Manager and Adjudicating Officer S V Krishnamohan said that there was a general 'lackadaisical attitude' on the part of JRG Securities in complying with the regulator's norm with respect to quarterly/monthly settlement of funds and securities of the clients on various occasions.

He said JRG Securities did not exercise due skill, care and diligence as required under the regulations in carrying out the business of a stock broker.
The markets regulator noted that NSE conducted inspection of books and accounts during May 2012 and imposed a fine of Rs 10,000 for non-settlement of funds and securities and again it observed the same non-compliance for non-settlement of funds and securities during inspection in April 2013 and imposed a penalty of Rs 15,000.
Hence, the defaults on the part of the noticee are repetitive in nature that cannot be viewed leniently, Sebi said in its order.

Accordingly, Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 8 lakh on the stock broker.