ICICI Securities settles case with Sebi for Rs 40 lakh over terminal misuse

The Securities and Exchange Board of India (Sebi) said on Monday that stock broker ICICI Securities had settled a matter with the market regulator by paying Rs 40.2 lakh in the alleged misuse of terminals and lapses in monitoring its authorised persons.

 

The regulator said the adjudication proceedings in the matter have been disposed of following the payment. The settlement amount was recommended by a high-powered advisory committee and approved by a panel of Sebi’s whole-time members.

 

The market watchdog issued a show-cause notice to ICICI Securities in May 2024 after observing that the stock broker allegedly failed to monitor its authorised persons (APs) as the trading terminals of five users allocated to the APs were being operated from unknown places. These were not reported to the exchanges.

 

 

It also noted that ICICI Securities did not have systems to monitor the trading practices of its APs as the AP was using login credentials of the clients for online trading. Only approved users are allowed to operate the trading terminals allocated to them.

 

In July 2024, the stock broker applied for settlement without admitting or denying the findings under the Settlement Regulations. The settlement amount was paid on January 1, 2025.

 

The stock broker also settled a matter last year on alleged non-compliance of merchant bankers’ regulations. The broking outfit had then paid Rs 69.82 lakh under the settlement norms. The matter is related to findings by Sebi from an inspection between April 2020 and March 2022.

 

ICICI Securities is in the process of delisting from the bourses and has secured the approval of the National Company Law Tribunal (NCLT).