SEBI Imposes Rs 27 Lakh Fine on Stock Broker

SEBI Imposes Rs 27 Lakh Fine on Stock Broker

Security Exchange Board of India (SEBI)  has on imposed a fine of Rs 27 lakh on Asit C Mehta Investment Intermediaries Ltd for misusing clients’ funds and other violations.

A joint inspection was conducted by SEBI, BSE, NSE and Central Depository Services India Ltd (CSDL) into the broking and depository participant operations of Asit C Mehta Investment Intermediaries from April 2017 to September 2018.

Accordingly, it was found that the noticee as a stock broker had misused clients’ fund wherein funds of credit balance clients was used for debit balance clients and for its own purposes. Besides, it was found that the broker was not maintaining reconciliation statement indicating the details of funds transferred between clients and own bank accounts on a daily basis.

SEBI disclosed in an order, the amount of mutualisation ranges from Rs 7.3 crore to Rs 28.9 crore.

Consequently, it has imposed a fine of Rs 27 lakh on Asit C Mehta Investment Intermediaries for the violations.

Source: – Sebi slaps Rs 27 lakh fine on entity for misusing clients’ fund


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