SEBI imposes penalty against Anand Rathi Share and Stock Broker for failing to inspect trading terminals
Aug 23, 2024
New Delhi [India], August 23 : Financial markets regulator SEBI has imposed a penalty of Rs 7 lakh on Anand Rathi Share and Stock Broker Limited for failing to properly inspect the trading terminals of its authorized persons.
The Securities and Exchange Board of India (SEBI) conducted an inspection of Anand Rathi Share and Stock Broker Limited regarding 'Control over Authorized Persons' on December 27, 2023, covering the period from April 1, 2022, to December 27, 2023.
Anand Rathi Share and Stock Broker Limited is a SEBI-registered stockbroker.
Based on the findings of the inspection and the noticee's response, certain alleged non-compliances were observed. SEBI stated that the trading terminals were not found at the locations reported by the stockbroker to the exchanges.
In its adjudication order dated August 23, SEBI noted that the stockbroker had not conducted a proper inspection of its authorized persons.
"During the inspection of Noticee's AP - RATHI SHARAD SHANKARLAL, it was observed that the terminal allotted to the said AP was not found at the inspection location (Nashik), and the terminal is operated by the AP himself from the UK. For AP Suyog Securities Pvt Ltd., it was observed that two terminals allotted to the said AP were not found at the inspection location (i.e., 101, Apollo Avenue, 30-B, Old Palasia, Indore), and according to the AP, the aforesaid terminal was at the Bhopal Branch. Further, as per Exchange records, another terminal of the AP was found at a non-reported location," the SEBI order stated.
Considering the facts and circumstances of the case, SEBI imposed a penalty of Rs 7 lakh on Anand Rathi Share and Stock Broker Limited.
The SEBI order also stated that the stockbroker must pay the penalty within 45 days through the online payment facility available on the SEBI website.
In the event of failure to pay the amount, SEBI may initiate "consequential actions," including the realization of the penalty amount along with interest, by attachment and sale of movable and immovable properties.
