B S Securities and Brijmohan Sagarmal Capital Services today settled a case with Sebi over alleged violations of broker norms after paying around Rs 26 lakh collectively as settlement fee.
It was alleged that the two entities had acted as both broker and counterparty broker of the clients, while they indulged in synchronised trades on BSE and NSE, thereby violating Sebi (Stock Brokers and Sub-Brokers) Regulations in the matter of Shiv Vani Oil & Gas Exploration Services Ltd.
The Securities and Exchange Board of India in June, 2015 had initiated adjudication proceedings to inquire about the allegations against the two entities.
While the adjudication proceedings were underway, the entities submitted applications for settlement of the proceedings.
Thereafter, Sebi's High Powered Advisory Committee (HPAC) recommended that the matter may be settled on payment of Rs 12.92 lakh by each entity. This was also approved by the panel of whole-time members with the regulator, following which the entities remitted the amount in January.
In a settlement order passed today Sebi has disposed of the pending adjudication proceedings initiated against the noticees (B S Securities and Brijmohan Sagarmal Capital Services).
Besides, Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the firm is found to be untrue.
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