Anand Rathi Share Settles Sebi Case Amid Regulatory Scrutiny

Anand Rathi Share and Stock Brokers Ltd settled a case with Sebi involving alleged violation of stock brokers' norms. The case involved front-running in KPIT Technologies Ltd. The broker paid Rs 90.2 lakh without admitting guilt, leading to closure of proceedings.

In a recent development, Anand Rathi Share and Stock Brokers Ltd has brought to a close a case with the Securities and Exchange Board of India (Sebi). The case involved alleged violations connected to front-running by certain entities within KPIT Technologies Ltd's scrip. The broking firm resolved the issue by paying a settlement amounting to Rs 90.2 lakh.

This settlement comes after Anand Rathi filed an application with Sebi, proposing a resolution through a settlement order. Notably, the company opted to settle the allegations 'without admitting or denying the findings of facts and conclusions of law'. With the settlement process completed, Sebi has dispensed with the adjudication proceedings against Anand Rathi, which were initiated by a show cause notice dated March 7, 2024.

The allegations highlighted potential lapses in ensuring fairness and due diligence on part of Anand Rathi. Concerns were raised over transparency issues in trading execution, improper e-mail identification registrations, and irregularities in processing off-market transfers based on outdated instructions. These issues were linked to orders related to Mehrangarh Financial Advisors Private Limited.

(With inputs from agencies.)