Sebi Slaps Fines on Financial Firms for Regulatory Violations

The Securities and Exchange Board of India (Sebi) has imposed a financial penalty on Prabhudas Lilladher, assessing a fine of Rs 11 lakh after uncovering regulatory violations. The infractions, discovered during an extensive joint inspection, include misuse of client funds and inaccurate margin reporting.

The inspection, conducted with major exchanges like NSE, BSE, and MCX, spanned from April 1, 2021, to October 31, 2022. Key findings indicated misuse of funds on three events, with one instance noting a deficit of Rs 1.89 crore, breaching market norms.

Additionally, Sebi fined Mumbai-based Nuvama Wealth Rs 5 lakh for various regulatory lapses. Both firms were found deficient in adhering to financial regulations, casting a spotlight on cybersecurity and client fund reporting. The inspections covered periods extending to November 30, 2023.

(With inputs from agencies.)