- Saturday, November 30, 2024
The order came after the regulator and exchanges, NSE and BSE, conducted a thematic onsite inspection of the books of accounts and records of Reliance Securities
By: Shajil Kumar
CAPITAL markets regulator Sebi on Friday slapped a monetary penalty of ₹900,000 (£8,355.46) on Reliance Securities for flouting market norms as well as stock brokers rules.
The order came after the regulator and exchanges, NSE and BSE, had conducted a thematic onsite inspection of the books of accounts, records and other documents of authorised persons (APs) of Reliance Securities Ltd (RSL), a Sebi-registered stock broker.
The inspection was conducted to ascertain whether the same are being maintained in the manner required by RSL, with respect to provisions of stock brokers rules, NSEIL Capital Market (CM) regulations and NSE Future & Options (FO) trading norms.
The inspection was conducted for the period from April 2022 to December 2023.
Pursuant to the findings of inspection, Sebi issued a show cause notice to RSL on August 23, 2024.
In a 47-page order, Sebi found multiple violations committed by RSL and its authorised persons, including non-maintenance of adequate systems for recording client order placements, discrepancies in terminal locations, and lack of segregation at offices shared with other brokers.
The inspection also found that RSL failed to maintain required order placement records for offline clients.
Sebi has mandated brokers to retain verifiable evidence of client orders to ensure transparency and prevent unauthorised trades.
However, RSL admitted to lapses but stated corrective measures had been undertaken, including deactivating terminals operated by unapproved users, the order said. (PTI)
