Sebi slaps Rs3 lakh penalty on Regligare Securities

Sebi slaps Rs3 lakh penalty on Regligare Securities
PTI
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First Published: Thu, Nov 11 2010. 05 38 PM IST
Updated: Thu, Nov 11 2010. 05 38 PM IST
Mumbai: Market regulator Sebi has slapped a Rs3 lakh penalty on Religare over the financial service provider’s failure to conduct due diligence while processing some of its clients’ accounts.
The Securities and Exchange Board of India (Sebi) imposed the penalty after discrepancies were discovered during random checking of Religare Securities Limited’s documents, as per an order issued by the watchdog.
The regulator has imposed a Rs1 lakh fine on Religare for violating certain provisions of the Sebi Act and another Rs2 lakh for for not following some provisions of the Depositories Act, the order said.
In its order, Sebi said Religare has failed to ensure satisfactory internal control procedures and an adequate mechanism for reviewing and monitoring control systems at its branches, among other things.
Religare has not exercised enough due diligence on operations like processing and handling account opening forms and demat requests, Sebi added.
“These failures on the part of the noticee (Religare) compromises the safety and integrity of the securities market. I am of the opinion that every market intermediary is under obligation to exhibit highest standards of professionalism and integrity in the interest of capital markets,” Sebi adjudicating officer Satya Ranjan Prasad said in the order.
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First Published: Thu, Nov 11 2010. 05 38 PM IST