n Anand Rathi Share and Stock Brokers Ltd on Tuesday settled with markets regulator SEBI a case pertaining to alleged violations of stock brokers’ norms on payment of Rs 90.2 lakh.
The order came after the broking company filed an application with SEBI proposing to settle the violations “without admitting or denying the findings of facts and conclusions of law” through a settlement order.
Anand Rathi Share and Stock Brokers remitted the settlement amount of Rs 90.2 lakh.
“Therefore, in view of the acceptance of the settlement terms and the receipt of settlement amount …By SEBI, the instant adjudication proceedings initiated against applicant (Anand Rathi Share and Stock Brokers) vide SCN (show cause notice) dated March 7, 2024 is disposed of,” the regulator said.
The case pertains to alleged violations of regulatory norms by Anand Rathi Share and Stock Brokers in the matter of front-running by certain entities in the scrip of KPIT Technologies Ltd.
In the show cause notice, it was alleged that the applicant had failed to ensure fairness and exercise due diligence by not keeping transparency and credible records of the duly authorised person of Mehrangarh Financial Advisors Private Limited (MFAPL) with respect to placement of orders to the applicant for executing trading at the stock exchange platform.
Also, it was alleged that the applicant registered the email IDs of employees connected with its own group companies instead of registering the e-mail ID of the client, MFAPL or its duly authorised person.
It was further alleged that the broking firm processed the off market transfer with DIS (Delivery Instruction Slip) dated March 3, 2017 and March 1, 2018, relying on instruction from the authorised signatory of the applicant and outdated authorised signatory of MFAPL, respectively and not based on instruction from the valid authorised signatories.
