Sebi nears finalisation of penalty rationalisation framework for brokers

The Securities and Exchange Board of India’s (Sebi's) steps towards rationalisation of penalties imposed on stock brokers is nearing finalisation.

 

A sub-committee to review the penalties had submitted its suggestions to the market regulator last week, said people aware of the developments.

 

The committee has recommended issuing only warnings instead of penalties if the violations are not serious in nature.

 

Further, the suggestions include segregation of lapses due to technical or operational issues and those which are intentional. In case the lapses are intentional, a more serious action has been recommended.

 

Additionally, only the exchange where the stock broker is