BackSebi imposes ₹5 lakh fine on Yes Securities
Sebi along with the stock exchanges, inspected the accounts of Yes Securities in 2022 during which the regulator discovered several discrepancies in reporting.
PremiumNEW DELHI : Markets regulator the Securities and Exchange Board of India (Sebi) on Wednesday imposed a fine of ₹5 lakh on brokerage Yes Securities for irregularities pertaining to settlement of client funds, shortage in collection of margin and for not adhering to leverage and exposure limits.
Sebi along with the stock exchanges, inspected the accounts of Yes Securities in 2022 during which the regulator discovered several discrepancies in reporting. These include irregularities in monthly and quarterly settlement of funds, short collection of margins, and discrepancy reporting networth, among others.
The 22-page Sebi order said Yes Securities acknowledged some instances wherein retention statements and statement of accounts were sent to incorrect email addresses due to typographical errors adding that the broking house rectified the issues when it noticed the problem.
“I note that Noticee has belatedly sent the retention statements i.e after a period of 5 days as against within 5 days time required under the provisions of Sebi circular and also erred in sending statement of accounts in wrong email IDs as mentioned herein above," said Sebi’s adjudication officer Santosh Kumar Sharma in the order.
The regulator, however, noted that the material available on record does not quantify any disproportionate gain made by the brokerage. It also noted that the losses made by any of the investors due to such violations on part of the brokerage could not be ascertained.
“However, it is pertinent to note that the role of a Broker/Trading Member (TM) is crucial to the development of the securities market, especially for the entry of the small investors for whom the broker is the first mile of contact," Sebi said.
It added that in this regard, the role of trading members is crucial as a facilitator of small investors into the securities market. “So, it is of utmost importance that every TM abides by the relevant regulations, provisions of Sebi/Exchange circulars and various guidelines issued by Sebi/Exchanges," the Sebi order said.
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