Sebi raps Edelweiss Broking for not reporting suspicious activity

The Securities and Exchange Board of India (Sebi) on Tuesday issued a warning to Edelweiss Broking (now Nuvama Wealth and Investment) and directed it to be more diligent in conducting its business and reporting suspicious transactions. 

Sebi noted that the company had failed to report suspicious transactions by a certain client even when his trading turnover was disproportionate with the declared annual income. 

The matter is related to dematerialisation and sale of shares in dormant accounts using forged documents by certain entities between 2008 and 2013. 

Sebi order stated that a three-month suspension would not be commensurate for the violations and thus only a warning has been issued.