Sharekhan pays nearly Rs 3 cr to settle two cases with Sebi for alleged violations, code of conduct

New Delhi: Stock broker Sharekhan has settled two cases with market regulator Sebi by paying nearly Rs 3 crore. The regulator had initiated two adjudication proceedings against the broker for alleged violations of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms as well as code of conduct of stock brokers and sub-brokers. In one case, Sebi had sent a notice in February 2017, while it is yet to issue a notice in the second case. The Securities and Exchange Board of India (Sebi) conducted a probe and found that certain entities were front-running the trades of Sterling group. It was also alleged that Sharekhan facilitated certain entities to carry out the front-running activity disregarding the alerts received from the stock exchange. [caption id=“attachment_4279131” align=“alignleft” width=“380”]  Representational image. Reuters[/caption] The market watchdog also said that Sharekhan allowed improper use of information of confidential nature of clients by the dealers. While both the proceedings were pending with Sebi, Sharekhan filed two settlement applications without denying or admitting the charges and proposed to pay Rs 2.93 crore towards settlement. The settlement proposed was approved by a panel of Sebi’s whole-time members and the amount was remitted on April 8, 2019. Thereby, the proceedings initiated against Sharekhan are settled, the regulator said. “Sharekhan had filed a settlement application with Sebi in relation to a matter of alleged front-running between March 2009 and March 2011 by a former employee,” a company spokesperson said. The regulator has accepted Sharekhan’s application and has passed a settlement order dated 23 April disposing of the proceedings against Sharekhan. “Under the settlement regulations of Sebi, such settlements are made without admission or denial of any wrongdoing,” the spokesperson added. PTI VHP