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E-mail ID will not be published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

  • Back from the US of A, Modi will now have to walk the talk

    It would be no overstatement to suggest that prime minister Narendra Modi’s five-day trip to the US was an exercise in PR diplomacy.

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

Simon J Evenett

Where the mind leads, actions follow

Whether in business, government, non-profits, or elsewhere, what assumptions underpin ...

Zehra Naqvi

Fading empathy in the modern world

The episode of a man being mauled to death by ...

Gautam Gupta

French fashion icon Gaultier’s pret goodbye

With Gaultier gone, the world of international prêt will never ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture