GSB Securities settles SEBI charges for Rs28 lakh
MDT/PTI 02 November 2012

"SEBI in its consent order dated 31 October 2012 said that “enquiry proceedings initiated against the applicant (GSB Securities) for the non-compliance of provisions...stand settled and SEBI shall not initiate any enforcement action against the applicant for the same”

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) disposed of a case against GSB Securities after the entity made a payment of Rs28 lakh to settle charges related to violations of broker regulations, reports PTI.
 
SEBI in its consent order dated 31 October 2012 said that “enquiry proceedings initiated against the applicant (GSB Securities) for the non-compliance of provisions...stand settled and SEBI shall not initiate any enforcement action against the applicant for the same.”
 
A probe conducted by SEBI had found that GSB Securities had acted as an unregistered portfolio manager on behalf of two individuals Praveen Daga HUF and Chitra Vishwanath.
 
SEBI had alleged that the broker could not produce letter of authorisation from the two clients.
 
The broker proposed settlement under SEBI’s consent order mechanism on 27 February 2012.
 
Thereafter, a High Powered Advisory Committee (HPAC) considered the consent terms and recommended the case for settlement on payment of Rs28 lakh. The same was approved by a panel of whole time members of SEBI.
 
SEBI noted that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by GSB Securities is found to be untrue.
 
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