Sebi slaps Rs 11 lakh fine on CB Management

Market regulator Sebi today imposed a fine of Rs 11 lakh on CB Management Services Private Ltd for not complying with 'share transfer agent' regulations.
The violation was noticed by Sebi after it carried out an inspection of the entity in November 2013 for its share transfer agent activities -- transfer and duplication of shares, dematerialisation requests -- for the period from April 1, 2012, till date of inspection.
Sebi found that CB Management Services was processing requests with respect to transfer, demat, remat, duplicate of three companies of Uniworth Group without specimen signature of shareholders of these firms.
"Since share transfer activities are being carried out by the noticee (CB Management Services) without specimen signatures of the bonafide shareholders, fraudulent transfer of shares can take place and the noticee will not be in a position to check the same," Sebi said in an order.

Further, it has not taken any steps with respect to restoration of signature cards of the shareholders of Uniworth Group's companies, the regulator added.
Accordingly, the regulator has imposed a penalty of Rs 11 lakh on CB Management Services for its violations under Code of Conduct specified under Sebi (Registrars to an Issue and Share Transfer Agents) Regulations.