Sebi slaps Rs 27 lakh fine on entity for misusing clients’ fund

By: |
January 19, 2021 6:21 PM

A joint inspection was conducted by Sebi, BSE, NSE and Central Depository Services India Ltd (CSDL) into the broking and depository participant operations of Asit C Mehta Investment Intermediaries from April 2017 to September 2018.

The amount of misutilisation ranges from Rs 7.3 crore to Rs 28.9 crore, Sebi said in an order.The amount of misutilisation ranges from Rs 7.3 crore to Rs 28.9 crore, Sebi said in an order.

Markets regulator Sebi on Tuesday slapped a fine of Rs 27 lakh on Asit C Mehta Investment Intermediaries Ltd for misusing clients’ funds and other violations.

A joint inspection was conducted by Sebi, BSE, NSE and Central Depository Services India Ltd (CSDL) into the broking and depository participant operations of Asit C Mehta Investment Intermediaries from April 2017 to September 2018.

During the inspection period, the regulator observed that the noticee (Asit C Mehta Investment Intermediaries) as a stock broker had misused clients’ fund wherein funds of credit balance clients was used for debit balance clients and for its own purposes.

The amount of misutilisation ranges from Rs 7.3 crore to Rs 28.9 crore, Sebi said in an order.

The watchdog also noted that the broker had not made quarterly settlements of its active clients.

Besides, it was found that the broker was not maintaining reconciliation statement indicating the details of funds transferred between clients and own bank accounts on a daily basis.

Maintenance of reconciliation statement would help stock brokers to control flow of funds in between its own account and client accounts, the order noted.

Accordingly, it slapped a fine of Rs 27 lakh on Asit C Mehta Investment Intermediaries for the violations.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Exit of Gaurav Gupta does not warrant any disclosure under listing regulations: Zomato
2Analyst Corner – Auto PLI scheme: NEVs remain the centrepiece
3Corporate bond yields ease on demand from mutual funds, insurers