SEC charges Indian brokerages, including Edelweiss, Ambit for unauthorised dealings
their prompt remedial measures", besides their initiating registration with the SEC as a broker-dealer, were "important factors in accepting the firms' settlement offers, particularly the Commission's decision not to impose a cease-and-desist order or a penalty."
The regulator said it "is continuing to look for potential violations at other firms".
With regard to Ambit, SEC said that it systematically solicited US institutional investors for the purpose of providing brokerage services from at least January 2011
through April 2011.
When contacted by SEC in May 2011, Ambit said its solicitation had not yet resulted in significant brokerage business from US investors.
"However, Ambit had received some transaction-basedcompensation for buying and selling the securities of Indian issuers on Indian stock exchanges on behalf of US investors," the regulator said.
About Motilal, SEC said that it solicited and provided brokerage services to US investors from at least 2007 until April 2011.
As part of its solicitation of US investors, Motilal organised and sponsored an annual conference in the United States to which Motilal brought representatives of Indian
issuers and invited US investors, it said.
Further, Motilal bought and sold the securities of Indian issuers on Indian stock exchanges on behalf of US investors in exchange for commissions and soft dollar payments.
During the relevant period, as a result of these activities, Motilal received from at least 42 US institutional investors transaction-based compensation in the amount of
approximately USD 13.7 million, it said.
After being contacted by SEC, the regulator said, Motilal promptly undertook corrective action, including by cancelling a planned conference in
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