NEW DELHI, Jan 6: On Monday, brokerage firm ICICI Securities reached a settlement with the capital markets regulator Sebi regarding an alleged breach of stock broker regulations, agreeing to pay Rs 40.2 lakh in settlement fees.
The settlement was finalized without ICICI Securities admitting or denying any of the facts or legal conclusions, following a proposed settlement order.
Sebi’s adjudicating officer, Amit Kapoor, stated, “In light of the acceptance of the settlement terms… the adjudication proceedings initiated against the applicant (ICICI Securities) through show cause notice (SCN) dated May 17, 2024, are resolved under the settlement regulations.”
Sebi had launched adjudication proceedings against ICICI Securities for purportedly violating Stock Brokers regulations, leading to a show cause notice issued on May 17, 2024.
The SCN alleged that the firm failed to effectively monitor its authorized person (AP), as trading terminals used by five individuals associated with the AP were functioning from unidentified locations not reported to the exchange.
Furthermore, Sebi noted that ICICI Securities reportedly lacked systems to oversee the trading activities of its authorized person, who was using clients’ login credentials for online trading.
The SCN also asserted that the applicant failed to ensure that only approved users operated the trading terminals assigned to them.
Following the application submission, ICICI Securities presented revised settlement terms, which were subsequently approved by Sebi’s High Powered Advisory Committee (HPAC).
The firm then paid the settlement amount of Rs 40.2 lakh, which was acknowledged by the regulator, thus concluding the case with SEBI. (PTI)
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