SEBI passes consent orders against two brokerage firms

The Securities and Exchange Board of India (SEBI) has passed consent orders against brokerages Sam Global Securities and Globe Capital Market for their conduct on May 17, 2004 when the benchmark Sensex lost more than 11% or 565 points. The brokerages have remitted a sum of Rs 1500000 each towards settlement charges. According to SEBI, prima facie evidence "revealed that certain entities including Sam Global Securities and Globe Capital Market had portrayed bearish outlook to their clients through SMS's and e-mails". The market regulator further adds that "the applicants also committed various other irregularities such as trading through unregistered sub-broker, non-compliance with the code of conduct for stock brokers, non adherence to KYC norms and unauthorized distribution of trading terminals, etc". According to the SEBI release, the applicants, vide letters dated September 24, 2007 and January 31, 2008 proposed settlement of the said proceedings through a consent order. Add Comment