Stock broker Master Capital Services Ltd (MCSL) has settled with Sebi a case related to alleged violations of norms by paying Rs 7.65 lakh.
The regulator had initiated adjudication proceedings against MCSL for allegedly violating Sebi (Stock Brokers and Sub-brokers) Regulations.
Sebi had conducted an inspection of MCSL for the period from April 2013 to August 2014.
Following the initiation of proceedings, MCSL was issued a show-cause notice (SCN) in which it was alleged that the stock broker had taken more than a month to take necessary steps to redress three complaints out of the total of 127 received by it during the inspection period.
Another allegation pertained to over 6,079 active clients where new email IDs were not secured by the stock broker from the clients despite instructions from Sebi.
Pending the adjudication proceedings, the stock broker submitted a consent application to the regulator for their settlement, the Securities and Exchange Board of India (Sebi) said in an order.
MCSL proposed a payment of Rs 7.65 lakh towards full and final settlement of all regulatory, civil or criminal proceedings in relation to the facts contained in the SCN without admitting or denying any violation on the part of the applicant, the order added.
Earlier, the settlement terms were considered by the High Powered Advisory Committee (HPAC), which sought the status of compliance from MCSL in obtaining new e-mail IDs from its 6,079 active clients. As the information was not readily available with the stock broker, the settlement application was deferred.
The settlement terms were again placed before the HPAC along with the information sought, following which it recommended that the case may be settled on payment of Rs 7.65 lakh towards the settlement terms.
The recommendation of HPAC was also approved by a panel of whole-time members of Sebi, the regulator noted.
Last month, MCSL paid the settlement amount of Rs 7.65 lakh and accordingly, Sebi disposed of the proceedings.
The regulator also noted that if any representation made by the stock broker in the settlement proceedings is subsequently found to be untrue, enforcement actions can be initiated against it.
Separately, Arcadia Share & Stock Brokers has settled a case with Sebi related to alleged violations of various capital market norms after paying over Rs 5.86 lakh.
The regulator had initiated adjudication proceedings against Arcadia for alleged fraudulent trading activities in the shares of Veritas India during the period from January, 2009 to March, 2012.
Sebi had initiated fresh adjudication proceedings against Arcadia after the Securities Appellate Tribunal had set aside an earlier order.
While the broker has paid Rs 5 lakh towards the settlement terms, it has discharged Rs 86,375 as legal costs incurred by Sebi.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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