Market Regulator Sebi on Thursday imposed a fine of Rs 5 lakh on Anand Rathi Share and Stock Brokers Limited (Anand Rathi Shares and Stock Brokers). The fine has been imposed for violating regulatory rules. According to the order, the fine has been directed to be filled within 45 days. The order came after SEBI inspected the articles and records of Anand Rathi Share and Stock Broker Limited (which is a registered stock broker and depository participant). This inspection was conducted from 25 November 2021 to 15 December 2021.
In its investigation, SEBI found that the funds of credit balance clients were misused to meet the offering of clients with debit balances and/or for their needs. The amount of misuse was between ₹ 22.07 lakh to ₹ 16.36 crore.
In addition, the broker did not maintain the Daily Reconsions of Statement during the inspection period, the wrong reporting of the margin collection and did not report correct reporting of the total debit balance of up to ₹ 10 lakh under the risk -based supervision. In addition, the regulator noticed that in 28 cases (unauthorized trades) were traded without the consent of the client.
SEBI Judicial Officer Amar Navalani said, “I note that Notessi (Anand Rathi Sher and Stock Broker), which is SEBI registered intermediate, had to follow the implemented provisions of laws, which is bound to implement SEBI . Notice did not follow the provisions of the law and should be dealt with with suitable penalty to such failure and/or non-complex. “