Thursday 9 June 2011

Reliance Securities pays to settle irregularities case

Reliance Securities, part of the Reliance Anil Dhirubhai Ambani Group and which operates under the Reliance Money brand name, has paid Rs 25 lakh as settlement charges to the Securities and Exchange Board of India (Sebi). As part of the settlement, the domestic brokerage will not register any new clients during the next 45 days and will also spend Rs 1 crore on an investor education and awareness programme.
Reliance Securities was subject to Sebi investigation that revealed various irregularities such as excess securities transaction tax (STT) being collected from clients during 2006-08, power of attorney from clients in favour of Reliance Commodities, delay in updating online client ledger, not taking adequate steps to redress investor complaints within 30 days and absence of sound third-party checks for receipts of payments, among others. A showcause notice dated August 9, 2010, under the enquiry proceedings and August 31, 2010, under the cease and desist proceedings were issued to Reliance Securities.

No comments:

Post a Comment