Market regulator Sebi today agreed to settle a probe against Reliance Securities for a suspected breach of regulations, after the Anil Ambani group firm offered to pay Rs 25 lakh among various settlement terms.
Brokerage firm Reliance Securities will also not register any new clients for the next 45 days and would spend Rs 1 crore on investor education and awareness programs, as per the terms of the settlement with Sebi.
The company was being probed for alleged violations of rules concerning code of conduct for brokerage entities between the period from April 2007 to March 2009.
Sebi said its inspection of the books of Reliance Securities Ltd (RSL) for the aforesaid period prima facie revealed various irregularities.
These included lack of documentary proof for a branch office, collection of excess securities transaction tax and collection of cheque in the name of Reliance Money (another group company), among other irregularities.
Reacting to the Sebi consent order, an out-of-court like settlement procedure, the company said the consent was reached at voluntarily without admission or denial of guilt.
The company adopted the consent route voluntarily to avoid long drawn litigation, legal costs, etc, Reliance Securities said, while adding that the order would not have any impact on its existing customers.
It also said it had voluntarily agreed to all the terms of the settlement.
"RSL voluntarily agreed to spend Rs 1 crore on investor education and awareness programs. RSL has already announced extensive Investor Awareness Program to cover over 1.5 lakh investors across 200 cities in India within this year," it added.
Earlier in January, two other Anil Ambani group firms Reliance Infra and RNRL had reached a settlement with Sebi after paying consent charges of Rs 50 crore for settling a probe into alleged unfair market dealings by the two firms.
Besides, the two companies also agreed to abstain from investing in secondary market till 2012, while their top officials, including Chairman Anil Ambani, agreed to abstain from investing in secondary market till December 2011.
