The regulator discloses that the framework should impose higher fines on repeat offenders.
Securities and Exchange Board of India (Sebi) Market regulator has asked stock exchanges to come up with a uniform framework to levy penalties on broker's those who report incorrect margins. In a circular issued yesterday, the regulator said the framework should impose higher fines on repeat offenders.
“Considering the principle of ‘proportionality’, the fine shall be charged to the member based on the materiality of non-compliance done by the member which may include factors such as no. of instances, repeated violations, etc,” Sebi said in the circular. The framework will for all the brokers and members who either don’t collect or may short collect the margins from their clients.
In a separate circular, Sebi shared depositories to freeze the promoter holdings of any listed company who don’t provide the complete distinctive no. information to depositories by Aug 2019. Each share of a listed company both in physical and dematerialized form needs to have a distinctive no. and depositories maintain a database of such information in which every transaction is done on the share is captured. The measure will help in curbing frauds in terms of stealing of shares.
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