Market regulator Sebi slaps Rs 9 lakh fine on Stockholding Services

The Securities and Exchange Board of India (Sebi) on Tuesday imposed a penalty of Rs 9 lakh on stock broker Stockholding Services for certain violations of norms.  

The violations were found after a thematic inspection by the regulator during April 2022 and June 2023.  Sebi has confirmed that there were lapses in KYC verification, mismatch in bank account details, and lack of adequate systems to ensure margin requirements are in proportion to income proof declared by the client. 

Sebi has alleged that multiple unique client codes (UCCs) were mapped to common email id or common mobile number. Further, there were lapses while carrying out due diligence of relationship data in over 1,100 UCCs.