Reliance Securities pays Rs 25 lakh fine to Sebi
Market regulator Sebi agreed to settle a probe against Reliance Securities for a suspected breach of regulations, after the Anil Ambani group firm offered to pay Rs 25 lakh among various settlement terms.
Brokerage firm Reliance Securities will also not register any new clients for the next 45 days and would spend Rs 1 crore on investor education and awareness programmes, as per the terms of the settlement with Sebi.
The company was being probed for alleged violations of rules concerning code of conduct for brokerage entities between the period from April 2007 to March 2009. Sebi said that its inspection of books of Reliance Securities Ltd (RSL) for the aforesaid period prima facie revealed various irregularities. These included lack of documentary proof for a branch office, collection of excess securities transaction tax and collection of cheque in the name of Reliance Money (another group company), among other irregularities.
