capital Market regulator SEBI on Friday imposed a fine of Rs 9 lakh on Anil Ambani’s Reliance Securities. SEBI has taken this action in case of violation of market norms as well as stockbroker rules. The sanction order comes after subjective on-site inspection by SEBI and stock exchanges of the accounts, records and other documents of authorized persons of SEBI registered stock broker, Reliance Securities Limited (RSL). Reliance Securities is a subsidiary of Reliance Capital. Reliance Securities is a brokerage firm and one of the largest retail brokerage firms in the country.
SEBI had issued a show cause notice on August 23
This test was conducted to assess the maintenance of requirements by RSL with respect to the provisions of Stock Brokers Rules, NSEIL Capital Market Regulations and NSE Futures and Options Trading Rules. This investigation was conducted during the period from April 2022 to December 2023. Based on the results of the investigation, the Securities and Exchange Board of India (SEBI) issued a “show cause notice” to Reliance Securities on 23 August 2024.
SEBI investigation found many violations by the company
SEBI, in a 47-page order, found multiple violations committed by Reliance Securities Ltd and its authorized persons. These include failing to maintain adequate systems to record customer order planning, malfunctions at endpoints, and lack of insulation in offices shared with other brokers.
The company did not maintain required order planning records
The probe also found that Reliance Securities failed to maintain required order planning records for offline customers linked to its authorized persons – Jitendra Kambad and Naitik Shah. SEBI has directed brokers to maintain verifiable evidence of client orders to ensure transparency and prevent unauthorized transactions.
With PTI inputs
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