Sebi Wednesday imposed a fine of Rs 5 lakh on S K Infosolutions for failing to enter into valid agreements with its several clients as well as violating insider trading norms.
The regulator through a chartered accountant had conducted a audit inspection of books and records of S K Infosolutions, a registrar to an issue and share transfer agent (RTA)/(STA) on two occasions, October 2015 and December 2016.
Sebi, during the inspection, found that the firm had failed to enter into legally valid agreement with its 10 clients at appropriate time and gave contradictory information regarding the possession of specimen signature records and thereby violated RTA and STA norms.
"An RTA and STA is required to adhere to directives /provisions of law, be diligent and professional in its various tasks which are important for smooth / safe functioning of securities market. In this case, the noticee (S K Infosolutions) has committed breach of provisions, Sebi said.
Moreover, the company did not formulate code of conduct under PIT (Prevention of Insider Trading) regulations, hence violated PIT norms, Securities and Exchange Board of India (Sebi) said.
Accordingly, the regulator imposed a fine of Rs 5 lakh on the firm.
Registrar or transfer agents are the trusts or institutions that register and maintain detailed records of the transactions of investors for the convenience of mutual fund houses.
In a separate order, Sebi imposed a fine of Rs 4 lakh on Gold Dust Trading, owned by Harjit Jantri Singh for failing to make required disclosures regarding its shareholding in the scrip of Gujarat Meditech to the company and the stock exchange.
In an another order, Sebi fined Gujarat Meditech Rs 2 lakh for failing to make timely disclosure to BSE regarding acquisition of its shares by an individual and thereby violating Substantial Acquisition of Shares and Takeovers (SAST) norms.
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