said that it carried out 40 special purpose inspections of stock brokers to check their compliance with the AML/CFT framework. Further, 35 inspections of stock brokers and six depository participants focusing on compliance with KYC norms were carried out in 2012-13.
In addition to the special purpose inspections conducted by Sebi, compliance with AML/CFT norms are also verified by the stock exchanges and depositories (NSDL and CDSL) during their inspections of stock brokers and depository participants, and also at the time of half yearly internal audits by independent professionals.
Depository participants are also required to undergo concurrent audits with respect to their operations, which includes account opening/KYC/AML norms.
Sebi said that appropriate sanctions are applied where AML/CFT violations or discrepancies are observed. Further, the penalty structure of the stock exchanges has been recently reviewed and the penalties imposed for KYC and AML/CFT discrepancies and violations have been increased.
According to Sebi data, AML discrepancies were observed and action taken during the last fiscal in case of 62 members of NSE, 310 of BSE, 57 of CDSL and 34 of NSDL.
Out of these, advice was issued to 58 members of NSE, 308 of BSE, 57 of CDSL and 30 of NSDL, while fines were levied on four NSE members, 16 BSE members, one CDSL member and five from NSDL.
Sebi further said that it has consistently been in touch with the global bodies and other domestic regulators to keep regulatory framework for AML robust in the Indian markets.