172@29@17@143!~!172@29@0@53!~!|news|business|markets|-1906299.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
Last Updated : Sep 28, 2012 06:39 PM IST | Source: PTI

Sebi slaps Rs 5.75 lakh penalty on two brokerage firms

Sebi today imposed total penalty of Rs 5.75 lakh on two brokerage firms related to a probe into the affairs of erstwhile Bank of Rajasthan (BoR) and its promoters.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sebi today imposed total penalty of Rs 5.75 lakh on two brokerage firms related to a probe into the affairs of erstwhile Bank of Rajasthan (BoR) and its promoters.


The two brokerage firms - RR Chokhani Stock Brokers Pvt Ltd and Angel Broking Pvt Ltd - had allegedly carried out trading for some clients who were related to the promoters of BoR and received payment for the trades from entities other than their clients.


In its order against RR Chokhani Stock Brokers, Sebi's Adjudicating Officer Barnali Mukherjee said that after taking into consideration all the facts and circumstances of the case, "I impose a penalty of Rs 5,00,000 against the
noticee which will be commensurate with the violations committed by it."


In a separate order, Mukherjee imposed a fine of Rs 75,000 on Angel Broking.


The matter relates to Sebi's investigation into the affairs of BoR for a period between June 2007 and December 2009. Later, BoR had been acquired by ICICI Bank. During the period, it was found that the shareholding of the promoters of BoR with their PACs (Persons Acting in concert) had increased from 46.80 percent in June 2007 to 63.15 percent in December  2009.


The bank's promoters along with their PACs increased their shareholdings by way of acquiring shares on the market. Sebi observed that certain brokers including RR Chokhani Stock Brokers and Angel Broking traded for some clients who were related to the promoters of BoR and received payment for the trades from entities other than their clients.


Hence violating Sebi's norms on stock broker and sub broker regulations.

According to the regulator, default on part of RR Chokhani Stock Brokers was repetitive in nature.

First Published on Sep 28, 2012 06:33 pm
Sections