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Edelweiss Securities settles case with Sebi, pays Rs 35 lakh

Press Trust of India  |  New Delhi 

Wednesday settled a case related to alleged violation of stock regulations with by paying over Rs 35 lakh towards settlement charges.

The market regulator had initiated adjudication proceedings against the firm in November 2016 after it observed that the firm made proprietary fund pay from and thereby failed to segregate client funds and own funds.

Besides, the firm mapped its own instead of the client's in the demat accounts, where the securities of client were kept and did not use the word "client" in the name of

Further, there were alleged lapses in the internal control measures for access to institutional trading desk dealing room operation, said.

By doing so, the firm allegedly violated provisions of Stock Brokers Regulations.

While the proceedings were pending, the firm filed a plea under the settlement mechanism without admitting or denying the guilt in August 2018.

The company in its meeting with the regulator's internal committee in December 2018 proposed to pay Rs 35.31 lakh towards settlement charges.

The amount was approved by the panel of whole-time members of Sebi, the regulator said in a settlement order.

Edelweiss paid Rs 35.31 lakh towards settlement charges on February 27, following which the regulator has disposed of the pending adjudication proceedings.

Enforcement actions, including restoring or initiating the proceedings, could be initiated if any representation made by the firm is found to be untrue, the order said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 13 2019. 20:06 IST
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