Sebi Imposes Rs 9 Lakh Penalty on Reliance Securities for Regulatory Breaches

Sebi fined Reliance Securities Rs 9 lakh for breaching market norms after an inspection revealed multiple violations. Issues included improper order recording, unauthorised terminal use, and shared premises with other brokers. Despite corrective claims, Sebi found the lapses significant, underscoring the importance of consistent compliance.

The Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 9 lakh on Reliance Securities for breaching market regulations and stock broker rules. The penalty follows an inspection by Sebi and stock exchanges NSE and BSE, which uncovered several violations by the firm.

The inspection aimed to verify compliance with stock broker regulations and trading norms, covering the period from April 2022 to December 2023. It revealed issues such as inadequate client order records, unauthorised terminal operations, and shared office spaces with other brokers.

Reliance Securities acknowledged the discrepancies, claiming to have implemented corrective measures. However, Sebi rejected their justifications, emphasizing the firm's responsibility to maintain consistent compliance and citing the importance of retaining verifiable evidence of client orders to prevent unauthorized trades.

(With inputs from agencies.)