Sebi, in a 14-page order, found that trades executed from the terminal by Sharekhan’s Authorised Persons (APs) — Bhadra Services Private Limited and Asmita Jitesh — were not from the registered locations Unjha and Navi Mumbai, respectively. Also, in the case of one AP Amitkumar S. Dhupad, Sebi found that the terminal was operated by a person other than the approved user.
Both these offences were in the violation of Stock Brokers Regulations, 1992, the order said.
Sebi, through its May 15, 2024, communiqué, appointed an Adjudicating Officer to inquire into the matter. A show cause notice was issued on May 29, 2024, seeking a response as to why an inquiry should not be initiated against Sharekhan and why a penalty should not be imposed.
In its defence, the brokerage said it circulates awareness emails to its APs regarding operations of trading terminals from registered locations on a monthly basis. Moreover, the brokerage submitted that it has not extended the use of its trading terminals to any unauthorised person or place and that the same has been allocated to the APs in due compliance with the guidelines/procedures prescribed by the Sebi and the exchanges.Recently, the market regulator had imposed a penalty of Rs 11 lakh on IIFL Securities after finding the company in violation of stock brokers’ norms. The violations were pertaining to monthly and quarterly settlement of funds and securities, stock reconciliation, closure of client collateral account and passing of penalty on short reporting of margin among others.Also Read: Sebi slaps penalty of Rs 11 lakh on IIFL Securities in violation of stock brokers’ norms(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
