Sebi penalises individual for violating broker norms

Sebi has imposed a total penalty of Rs 5 lakh on an individual for allegedly violating broker norms and not furnishing information to the market regulator in a case relating to trading of Sumeet Industries shares.

Securities and Exchange Board of India (Sebi) has slapped a fine of Rs 3 lakh on one Sunita Gupta for acting as a unregistered sub-broker and imposed another Rs 2 lakh for not complying with the summons issued to her.

In its order issued yesterday, Sebi said it is imposing a "consolidated penalty of Rs five lakh on Sunita Gupta".

The matter relates to Sebi probe in the trading of the shares of Sumeet Industries for the period from October 1, 2006 to March 12, 2007.

Sebi said it observed that Gupta had traded as un-registered sub-broker in BSE on behalf of various clients.

Gupta was allegedly trading through the stock broker Parasram Holdings and had admitted that her main source of income is trading in shares, Sebi said.

According to the regulator, she had sold about 1.2 lakh shares of Sumeet Industries for four entities -- Perfect Car Scanners, Goldline International Finvest, Master Finlease and Avisha Credit Capital.

As per Sebi, Gupta "acted as un-registered sub-broker and traded on behalf of the above mentioned four entities".

On the charge of not providing information to Sebi, the regulator found that "the Investigation Authority (IA) had issued four letters and two summonses to the noticee".

"The noticee failed to fully comply with both the summons," it said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India and the US have come a long way from the frostiness of the Cold War

    As far as atmospherics go, it could scarcely be bettered.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

When we the people fail our nation

Today, we turn 65 years old as a republic. A ...

Purnendu Ghosh

The relative measures of time

Clock, the time-keeper, is our central machine. This machine dictates ...

Shona Adhikari

All roads lead to Delhi, as it gears up for art fair

With the seventh edition of India Art Fair (IAF) coming ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture