Sebi has imposed a fine of Rs 10 lakh on Aditya Birla Money for violating norms of stock brokers.
Sebi conducted an inspection of books and records of the broker from April 2010 to August 2011 to ascertain whether it had carried unregistered PMS activities, before obtaining registration as PMS in July 2010, through its 'Option Maxima Strategy'.
"Aditya Birla Money (notcee)did not have any agreement with its clients to act as their portfolio manager, as it was demonstrated and accepted that noticee was advising its clients, providing incidental advice is allowed in broker regulations. I note that noticee was the one who was directing its clients as well, i.e., it was the one who was taking the trading decision" Sebi Adjudicating Officer Sahil Malik said.
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