Stockbroker Penalized Rs. 15 Lakhs for Client Fund Misuse and Excess Trading Exposure Beyond T+2+5 Days

AT partially upheld SEBI's order against a registered stockbroker for misuse of client funds and providing excess exposure beyond T+2+5 days. The broker misutilized funds ranging from Rs. 88,000 to Rs. 2.48 crores across 31 instances, using credit balance clients' funds for debit balance clients' obligations. The charge of non-issuance of contract notes was dismissed as untenable. Applying the doctrine of proportionality and considering precedent of Angel Broking Ltd., while noting the appellant's status as a repeat offender, AT reduced the penalty from original amount to Rs. 15 lakhs. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X