Markets watchdog Sebi today warned Sankalp Share Brokers to be 'careful and cautious' while carrying out stock broking activities but said any future lapse will attract stringent action.
A probe by Sebi found that Sankalp Share Brokers had executed trades in April 2009 for a client, Amit Kumar Bagoria, who was barred from the securities markets.
The trades were executed as Sankalp Share's administration dealer forgot to freeze the client account. However, the client position was squared off and his account was immediately deactivated on the very same day.
By indulging in such activity, Sankalp Share had violated stock brokers' norm.
In an order, Securities and Exchange Board of India (Sebi) said that Sankalp Share had taken corrective steps as soon as it realised the mistake of having executed trades on behalf of the debarred client.
Further, the broker has improve their systems in order to aviod such incidents in future, it added.
Accordingly, Sebi has warned the broker to be careful and cautious in the conduct of its business and to adhere to and comply with all statutory provisions while carrying out its activities in the securities markets.
Any future lapse on its part in complying with the norms will invite stringent action, it added.
In a separate order, Sebi said it will initiate adjudication proceedings against VAS Educomp, Pushpanjali Drums and nine other individuals for alleged violation of SAST (Substantial Acquisition of Shares and Takeovers) norms.
