Sebi penalises individual for violating broker norms
Jan 24 2013 , Mumbai
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.