Sebi raps 119 brokers for fee defaults

“... a stock broker is liable for any action... including suspension or cancellation of its certificate of registration as stock broker, if he fails to pay fee,” it said.

In 2005, Sebi had appointed enquiry officers to conduct summary proceedings against certain brokers affiliated to various stock exchanges for their alleged failure to pay registration fee to Sebi. Sebi said it has been noted that the enquiry officers were unable to serve the show cause notice to the stock brokers through the stock exchanges to which they were affiliated, as the notices were returned undelivered with remarks like ‘returned undelivered’, ‘whereabouts not known’, and ‘left’.

The brokers are affiliated to stock exchanges of Ahmedabad, Gauhati, Madras, Pune, Bangalore, Coimbatore, Madhya Pradesh and Bhubaneshwar.