Sebi slaps Rs 1.5 lakh fine on Triveni Management

Market regulator Sebi today slapped a fine of Rs 1.5 lakh on Triveni Management Consultancy Services for allegedly not complying with norms related to dealings between client and stock broker. The Securities and Exchange Board of India (Sebi) had conducted an inspection of books of accounts, documents and other records of Triveni Management Consultancy Services during 2009-2011.

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The inspection team had observed certain deficiencies in the functioning of the company with respect to Know Your Customers forms and agreements, prevention of money laundering compliances, margin collection and reporting in the derivative segment and irregularities in handling of funds/securities. Sebi, in its order, today noted the company had not complied with mandatory statutory requirements relating to dealings between client and stock broker coupled with uniform documentary requirements.

The regulator noted the company's member-client agreements were incomplete with different deficiencies like no date and signature on risk disclosure, member-client agreements were not signed by member.

Besides, the firm failed to produce KYC forms for its clients and to obtain all the financial details of its clients regarding their trade in the Future & Option segment, Sebi said. Also, it had provided an undated policy on Prevention of Money Laundering Activities among others, it noted.

After considering all the facts and circumstances of the case, the regulator has imposed "a total penalty of Rs 1.5 lakh on the noticee (Triveni Management Consultancy Services)", for not complying with various provisions of Sebi's regulations.