Stock broker PhillipCapital has settled a case with the Sebi in a matter related to alleged violation of stock brokers norms after paying Rs 51 lakh towards settlement charge.
Besides, the entity allegedly failed to comply with various circulars of the Sebi as well as NSE.
The markets regulator in February 2018 had sent a show cause notice to the firm to adjudge alleged violation of Sebi norms wherein it was alleged that the firm failed to settle funds of its active clients and had not settled funds of inactive clients that was below Rs 2,000.
Besides, it was also alleged that the firm used its own fund to finance clients's trading and later collected charges from them in the form of delayed payment charges. It also delayed settlement of fund over 90 days.
However, during the pendency of the proceedings, PhillipCapital filed a settlement application with the Sebi in March 2018 and deliberated the terms of settlement with the regulator's internal committee.
Under the settlement mechanism, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.
High Powered Advisory Committee recommended the case for settlement after payment of Rs 51 lakh towards settlement charges. The committee further said the "settlement may only be considered upon receipt of an undertaking from the applicant that the defaults alleged in the show cause notice have been rectified and none of the defaults continue as on date".
The panel of whole time members of Sebi approved recommendations of the committee and an amount of Rs 51 lakh was remitted by PhillipCapital on April 10, 2019.
Accordingly, the Sebi said the "settlement order disposes of the... adjudication proceeding initiated against the applicant, viz PhillipCapital (India) Private Limited".
Enforcement actions, including restoring or initiating the proceedings, could be initiated if any representation made by them is found to be untrue, the Sebi said.
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