Sebi imposes Rs3 lakh fine on Prime Broking for violating broker norms
New Delhi: Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs3 lakh on Prime Broking Co. (I) Ltd for retaining the shares of Aanjaneya Lifecare (now known as Dr Datsons Labs Ltd) in respect of three clients for more than two quarters.
A probe conducted by Sebi found that Prime Broking was holding 8.75% stake in Aanjaneya Lifecare on behalf of its three clients—Kannan Vishwanath, CSA Holdings and CLT Investments—for more than two quarters, September and December in 2012-13.
The shares of these clients were held as collateral and not released to them as they owed Prime Broking for margins and cash receivables, the regulator noted. Accordingly, the accounts were not settled once in a quarter as required, said the market regulator in an order dated 13 July.
Sebi has levied the fine on the broker “for the retention of shares of Aanjaneya Lifecare of three clients without furnishing the periodical statement of securities account and without offering an explanation regarding retention of securities and the details of pledge, for more than two quarters”.
By indulging in such activity, it has violated the provisions of Sebi’s stock broker regulation.
In a separate order, Sebi has slapped a fine of Rs3 lakh on Beardsell Ltd for not making the necessary disclosures within the prescribed time frame under SAST (Substantial Acquisition of shares and Takeovers) norms.
“I am convinced that the noticee has failed to make the necessary disclosures within the prescribed time period required under... SAST Regulations for the period 2002, 2007 and 2009,” Sebi adjudicating officer Suresh B. Menon said in an order.
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