The Securities and Exchange Board of India has issued an order against Anand Rathi Share & Stock Broker Ltd., imposing a fine of Rs 7 lakh for multiple regulatory breaches.
The company was found to have serious compliance issues, including discrepancies related to trading terminals and their proper reporting.
SEBI's investigation revealed that the trading terminals of Anand Rathi were not located at the addresses reported to the exchange.
Additionally, the company failed to conduct proper inspections of its authorised personnel. This non-compliance was compounded by earlier penalties for similar shortcomings, such as failing to upload (Computer to Computer Links) CTCL IDs and inaccurately reporting the status of terminals.
The regulator noted that, while no precise figures were available to assess the exact financial impact of these defaults, the repetitive nature of the violations indicated a disregard for regulatory norms.
As a registered intermediary, Anand Rathi was obligated to adhere to SEBI's rules and regulations, designed to uphold market integrity and deter misconduct, the order noted.
The penalty must be paid within 45 days of receiving the order. Failure to comply may lead SEBI to initiate recovery proceedings, which could include measures such as the attachment and sale of movable and immovable properties to recover the penalty amount and associated interest.
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