SEBI Fines Brokerage Firm Anand Rathi For Violating Stock Broker Norms

Markets regulator SEBI (Securities and Exchange Board of India) has fined brokerage house Anand Rathi Rs 1 lakh for violating stock broker norms by transferring funds from the client’s account to own account and vice versa on several occasions.

In an order, the regulator stated that Anand Rathi Shares and Stock Brokers has mixed-up client’s funds with its own funds and vice versa and thereby acted in contravention of SEBI(Stock Brokers and Sub-Brokers) Regulations. The regulator had outlined strict segregation of client’s funds, member account’s funds and transfer of funds is permitted as an exception under specific instances.

Source: The Money Control

Static/Current Takeaways Important For IBPS Clerk Mains Exam 2018:

  • SEBI Chairperson: Ajay Tyagi, Headquarters: Mumbai.

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