Regulations
SEBI rationalises procedure for de-registration of sub-brokers

From now onwards, the affiliated stock broker has to issue a public advertisement in a local newspaper located at the sub-broker's place of work to publicly inform his/her registration

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has asked stock brokers to make a public announcement whenever any of their sub brokers surrender their registration, reports PTI.

 

The market regulator's directive is part of a decision to rationalise the surrender of registration by sub-brokers, given their present role, where they are not permitted to deal with funds and securities of the investors.

 

In a circular, SEBI said the decision has been taken in consultation with the major stock exchanges and stock brokers' associations.

 

From now onwards, the affiliated stock broker has to issue a public advertisement in a local newspaper located at the sub-broker's place of work to publicly inform that the particular entity is surrendering the registration.

 

SEBI said the modification have been introduced to protect the interests of investors as well as to promote the development and regulation of the securities market.

 

The affiliating stock broker also has to furnish an undertaking to the stock exchanges that clients of the particular sub broker, who is to surrender the registration, is informed about the move.

 

However, in the case of transition from sub broker to Authorised Person (AP) -- where the entity surrenders registration while seeking approval as AP with the same stock broker and the same stock exchange -- there is no need to issue public advertisement.

 

Further, the stock broker and the stock exchange would have to publish the details of sub-brokers whose registration has been surrendered or their new status as AP on their respective websites for the information of the investors.

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COMMENTS

Sweena Jain

4 years ago

Who will be held liable for cheating or fraud done by AUTHORISED PERSON?

SEBI imposes penalty of Rs50,000 on Frontier Leasing

Frontier Leasing and Finance sold 2.86% stake in Subway Finance and Investment but did not disclose the information for over 2,808 days

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a penalty of Rs50,000 on Frontier Leasing and Finance Ltd (FLFL) for failing to make disclosures regarding change in its shareholding in another company within stipulated time, reports PTI.
 
The company's shareholding pattern changes on account of sale of shares on 31 March 2003.
 
As per regulatory norms, acquisition or sale of shares in excess of 2% of the company's overall stake requires an entity to make a disclosure to the stock exchanges within two days of sale.
 
In its order, SEBI alleged that Frontier Leasing and Finance along with other promoters were holding shares/voting rights in Subway Finance and Investment Company Ltd (SFICL) within the prescribed limits.
 
However, on 31 March 2003, the entity sold 7,000 shares/voting rights translating to 2.86% stake of Subway Finance and Investment Co to another promoter of the company as part of inter-se-transfer among promoters transactions.
 
FLFL was required to make disclosure regarding the sale and its aggregate shareholding in the company to the stock exchanges within two days of the sale. SEBI observed that FIFL made disclosure after a delay of 2,808 days.
 

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LIC sells over 2% stake in Tata Global Beverages for Rs160 crore

These shares, offloaded through open market transactions between 28th June and 24th August this year, were worth Rs160.15 crore. LIC now holds 9.71% stake in Tata Global Beverages

 
New Delhi: Life Insurance Corp of India (LIC) has sold shares worth Rs160 crore of Tata Global Beverages, representing a little over 2% stake in the company, reports PTI.
 
In a regulatory filing, Tata Global Beverages said LIC has offloaded 1.28 crore shares, translating to around 2.08% stake in the beverages major.
 
These shares, sold between 28th June and 24th August this year, were worth Rs160.15 crore. They were offloaded through open market transactions.
 
LIC now holds 9.71% stake in Tata Global Beverages. Prior to these transactions, the insurance major held 11.79% shareholding in the company.
 
Tata Global Beverages is the world's second largest tea company. The group's annual turnover is $1.4 billion and it employs over 3,000 people worldwide.
 
 

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