New Delhi: The Securities and Exchange Board of India (SEBI) has imposed a Rs 9 lakh fine on Reliance Securities for violating market norms and stockbroker regulations. The penalty follows inspections by the NSE and BSE, which reviewed the books, records, and other documents of Reliance Securities’ authorized persons, uncovering lapses that led to the regulator’s action.
The inspection aimed to verify if Reliance Securities Ltd (RSL) was complying with stockbroker rules, NSEIL Capital Market regulations, and NSE Futures & Options trading norms. Covering the period from April 2022 to December 2023, the inspection uncovered irregularities, prompting SEBI to issue a show-cause notice to RSL on August 23, 2024.
SEBI, in its 47-page order, underlined several violations by RSL and its authorized persons. These included inadequate systems for recording client order placements, discrepancies in terminal locations and failure to maintain proper segregation at offices shared with other brokers.
The inspection also revealed that RSL did not maintain required order placement records for offline clients linked to its authorized persons, Jitendra Kambad and Naitik Shah. SEBI has required brokers to maintain verifiable proof of client orders to ensure transparency and prevent unauthorised trading.
