Mumbai: Capital market regulator Sebi on Wednesday said it has agreed to settle a probe against Tata Securities after payment of Rs 5 lakh with regard to alleged violation of stock broking regulations.
The probe has been settled through consent proceedings, an out-of-court like settlement under which Rs 5 lakh have been paid towards settlement charges.
The Sebi was probing alleged failure of Tata Securities in putting in place required risk management framework in relation to its client’s trade in shares of RTS Power Corp. A show cause was issued by the regulator in this regard in July 2010.
Tata Securities was alleged to allow its client to take huge positions in the shares within one month of registration and the client failed to meet the payment obligations, indicating failure of the broker’s risk management system.
Sebi said that the consent order has disposed off the proceedings against Tata Securities without admission or denial of the guilt. However, Sebi has reserved the right to reopen the pending proceedings.
Meanwhile, Sebi in an another order barred Enkay Texofood Industries and its director Harinarayan Sharma from the securities market till all the pending investor grievances against the company were resolved.
As on 5 May 299 investor complaints are pending unresolved by the company.
“In view of the foregoing...hereby restrain the company...and its director Harinarayan Sharma...from accessing the securities market and prohibit them from buying, selling or otherwise dealing in securities, directly or indirectly, till all the pending investor greivances...are resolved and the same is reported to and confirmed by the Sebi,” it said.