capital Market regulator SEBI on Friday imposed a fine of Rs 9 lakh on Anil Ambani's company Reliance Securities. SEBI has taken this action in case of violation of market norms as well as rules of stock brokers. The penalty order comes after a subjective onsite inspection by SEBI and stock exchanges of the accounts, records and other documents of authorized persons of SEBI-registered share broker Reliance Securities Limited (RSL). Reliance Securities is a subsidiary of Reliance Capital. Reliance Securities is a broking firm and is one of the largest retail broking companies in the country.
SEBI had issued show cause notice on 23 August
This test was conducted to assess the maintenance of the requisite manner by RSL with respect to the provisions of Share Brokers Rules, NSEIL Capital Market Regulations and NSE Futures & Options Trading Norms. This investigation was conducted for the period from April, 2022 to December, 2023. As per the findings of the investigation, the Securities and Exchange Board of India (SEBI) issued a 'show cause notice' to Reliance Securities on August 23, 2024.
SEBI investigation found many violations by the company
SEBI, in a 47-page order, found multiple violations committed by Reliance Securities Ltd and its authorized persons. These include not maintaining adequate systems to record customer order planning, malfunctions at terminal points and lack of isolation in offices shared with other brokers.
Company failed to maintain required order planning records
The investigation also found that Reliance Securities failed to maintain required order planning records for offline customers linked to its authorized persons – Jitendra Kambad and Naitik Shah. SEBI has ordered brokers to maintain verifiable evidence of customer orders to ensure transparency and prevent unauthorized trades.
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