Sebi slaps Rs 3-lakh penalty on BSE for SECC violations

Sebi conducted its investigations to ascertain if BSE’s investments were unrelated or not incidental to its activity as a stock exchange.

Sebi slaps Rs 3-lakh penalty on BSE for SECC violations
Sebi conducted its investigations to ascertain if BSE’s investments were unrelated

Sebi on Friday levied a penalty of Rs 3 lakh on the BSE for violation of Stock Exchanges and Clearing Corporations (SECC) Regulation, 2018. The order pertains to the exchange’s acquisition of stake in various subsidiaries — BSE Technologies (BTPL), Marketplace EBIX Technology (METSPL), BSE Tech Infra Services (BTISPL), BIL Reyson Futures and Indus Water Institute —without taking the necessary approvals from Sebi. A show cause notice was issued to the BSE in January in this regard.

Sebi conducted its investigations to ascertain if BSE’s investments were unrelated or not incidental to its activity as a stock exchange.

It was alleged that BSE, through its wholly owned subsidiary BTPL, in 2009 continued to carry out its activities without the approval of Sebi and had indirectly carried out unrelated/non-incidental activities through BTISPL and METSPL, which were subsidiaries of BTPL.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos