Sebi imposes Rs 35 lakh fine on Kisan Ratilal Choksey Shares

Markets regulator Sebi has slapped a fine of Rs 3500000 on Kisan Ratilal Choksey Shares and Securities for not complying with the stockbroker norms.The regulator found the brokerage failed to settle the running accounts of 39% of its clients on quarterly basis as required under Sebi norms.The Securities and Exchange Board of India (Sebi) said the failure to settle client accounts pertained to six consecutive quarters, from April 2011 to September 2012.Moreover, by its own admission, the brokerage firm said it had not complied with Sebi's directive till January 2013, i.e. even after two and a half years from the date when the provisions regarding the settlement of running accounts came into effect.Sebi, in December 2009, issued a framework where a client specifically authorises the stockbroker to maintain a running account, the actual settlement of funds and securities shall be done by the broker , at least once in a quarter or month, depending on the preference of the client."By delay in implementation... the noticee has consequently failed to adhere to the prescribed code of conduct in respect of due skill, care and diligence as well," the markets watchdog said.Accordingly, Sebi has imposed a penalty of Rs 3500000 on the noticee for violating code of conduct specified under stockbrokers regulations."... the promoter noticee Group (9 entities) failed to make the public announcement to acquire shares in accordance with the Takeover Regulations on four occasions during the period 1997-2000."... this resulted in denying the statutory right of the shareholders of the company to exit through open offer mechanism at the respective point of time. To this extent, there was loss to the investors," Sebi said.Sebi said it has imposed "a penalty of Rs 2000000 on the noticees which will be commensurate with the violation committed by it."