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.

EDITORIAL OF THE DAY

  • PSU banks can take a lesson from their private peers on disclosures

    The country’s top private lenders ICICI Bank and Axis Bank declared their fourth quarter earnings recently and both stepped up their asset quality d

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Tushar Gandhi

An unexplored side of rural enterprise

What is rural enterprise? Ask this qu­estion and 9 out ...

Rajgopal Nidamboor

Timeless idiom of mindful living

Each of us, according to scholar-historian Felipe Fernandez-Armesto, is familiar ...

Dharmendra Khandal

So, how do we define a 'vermin'?

These days there’s an ongoing debate whether to declare various ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture