SEBI imposes penalty on CB Management Services for non-compliance | The Financial Express

SEBI imposes penalty on CB Management Services for non-compliance

SEBI has imposed a penalty of Rs 3 lakh on CB Management Services for delaying the process of issuance of duplicate shares and failing to process transmissions of stocks within the time limit

SEBI imposes penalty on CB Management Services for non-compliance
In its probe, Sebi found that for seven clients, the stockbroker failed to settle clients' funds/securities on a quarterly or monthly basis.

Markets regulator Sebi has imposed a penalty of Rs 3 lakh on CB Management Services for delaying the process of issuance of duplicate shares and failing to process transmissions of stocks within the time limit.

Also, it had not maintained signature records of shareholders in certain companies.

CB Management Services, Registrar to an Issue and Share Transfer Agent, has been asked to pay the fine within 45 days, the Securities and Exchange Board of India (Sebi) said in an order on Tuesday.

The capital markets regulator conducted an inspection of CB Management Services’ activities as a Registrar to an Issue and Share Transfer Agent from April 2017 to March 2019.

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In his order, Sebi’s Adjudicating Officer N Hariharan found that “the noticee (CB Management Services) has not maintained signature records of the shareholders, more than 150 instances of violations of timelines for instances of duplicate shares and nine instances of delay in the processing of transmission of shares”.

By doing so, it has violated the provisions of the model agreement between the share transfer agent and the company, and the code of conduct prescribed under the Registrar to an Issue and Share Transfer Agent (RTI/STA) norms, he added.

In a separate order, Sebi has levied a fine of Rs 5.5 lakh on Shree Bahubali Stock Broking Limited for its failure to settle clients’ funds/ securities and non-compliance with applicable KYC (Know Your Client) norms.

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The regulator conducted inspections of books of accounts and other records of the Shree Bahubali Stock Broking Limited (earlier known as Shree Bahubali International Ltd). The inspections were carried out in October 2012 and July 2014.

In its probe, Sebi found that for seven clients, the stockbroker failed to settle clients’ funds/securities on a quarterly or monthly basis.

“It is observed that the noticee (Shree Bahubali Stock Broking Ltd) failed to exercise due care, skill and diligence as observed in the irregularities in KYC documents, changes being made to documents during the inspection process,” Sebi said.

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