The case relates to incidences of Guiness Securities' involvement in allegedly charging higher rates from clients towards purchase and sale of shares, dealing with unregistered sub-brokers, mis-utilising clients' funds and failure to redress investors' complaints within a reasonable time, among others
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Wednesday settled charges of violation of rules against Guiness Securities on payment of Rs15 lakh by the company, reports PTI.
"The noticee (Guiness Securities) has remitted a sum of Rs15 lakh ... this consent order disposes of the said proceedings," SEBI said while passing the consent order.
The case relates to incidences of Guiness Securities' involvement in allegedly charging higher rates from clients towards purchase and sale of shares, dealing with unregistered sub-brokers, mis-utilising clients' funds and failure to redress investors' complaints within a reasonable time, among others.
In a consent order, the company or person pays the settlement fee without denying or admitting the guilt.
SEBI had in 2009 appointed an adjudication order to look into the alleged violations.
Even as the proceedings were in progress Guiness Securities had in January 2010 made an application for settlement of proceedings through a consent order without admitting or denying the guilt.
RBI panel on customer services says board must discuss top complaints and monitor implementation of policy for customer care
The Damodaran Committee on bank customer services has recommended active involvement of the boards of banks to guarantee customer satisfaction. "Commitment to hassle-free service for customers under the oversight of the bank's board is necessary to ensure maximum customer satisfaction. Customer centricity should be the purpose of the existence of the bank," the committee set up by the Reserve Bank of India has said in its report which was published on Wednesday.
The committee has said that "customer service and grievance redressal should be included as a mandatory parameter in the performance appraisal report of all employees."
Explaining the role of the board of directors in implementing customer service guidelines, the committee said, "The root cause analysis of the top five types of complaints in a quarter should be placed before the Customer Service Committee of the Board held in the subsequent quarter. A brief note on the discussions held on the same should be placed before the Board in its subsequent meeting. The actionable points that emanate out of such deliberations should be closed only after placing the compliance status in the subsequent meetings of the Customer Service Committee or Board (as the case may be)."
The report suggested that an agenda on the level of implementation of the Bank's Code of Commitments to Customers and an overview on the grievance redressal mechanism in the bank should be placed before the bank every quarter before the Customer Service Committee.
The committee said that every board should ensure they have comprehensive policies for customer acceptance, care and severance. "The bank policies should clearly lay out its approach to customer care, taking into account the geographic spread of its branches, segments of customers, needs of special sections like senior citizens, widows, physically challenged persons, etc," the committee said in its report.
Such a policy, the committee said, "must also clearly define and distinguish the features for different products and services and must indicate the target customer group. It should show sensitivity for small customers by ensuring that the pricing (bank charges) does not act as a deterrent for the small person to do banking transactions."
Emphasising on 'customer centricity', the committee recommended that bank boards should evolve human resources policies which will "recruit for attitude and train for skills." It pointed out that policy "should be framed to ensure that the prescribed response time for every type of grievance should be approved by an official not below the rank of the top management of the bank."
The report also suggested that "Branch Level Customer Committee meetings may be replaced with a meeting of customers of all banks of that area (say district-wise, block-wise) and be held in the presence of representatives of banks at periodic intervals (monthly/quarterly). The responsibility of organising such meetings may be entrusted to eminent consumer organisations in the region and expenses of such meetings can be shared by the bankers of that jurisdiction. The proceedings of the meetings should be recorded (CCTV) for the purpose of review of the same in higher fora."
Exchanges would have to implement the order by 2nd December which would be applicable to trading in the cash and derivative segments. The move follows complaints from investors against brokers about unauthorised trading in their accounts
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has asked stock exchanges to alert investors about details of their transactions every day through SMSes and e-mail, a move to check unauthorised trading by brokers, reports PTI.
"Stock exchanges shall send details of transactions to investors, by the end of trading day, through SMSes and e-mail alerts," SEBI said in a circular.
Exchanges would have to implement the order by 2nd December and it would be applicable to trading in the cash and derivative segments.
SEBI said it had received complaints from investors against brokers about unauthorised trading in their accounts.
The regulator has issued the circular after consultation with the participants and bourses, including the Bombay Stock Exchange and the National Stock Exchange.
SEBI also directed the exchanges to provide a platform wherein brokers can upload client details like name, address, mobile number, e-mail and identification unique to every client.
The circular directed brokers to ensure that no two persons have a common mobile number or e-mail.
The market regulator has also asked exchanges to verify the details uploaded by brokers by sending SMSes, e-mail and letters to the correspondence address of clients.
Besides, exchanges would have to report discrepancies in data upload to brokers. SEBI has allowed the exchanges to use a portion of the listing fees to meet the expenses for offering this facility.
It has also asked exchanges to give implementation status of the circular in their monthly reports, besides giving wide publicity to this facility.