NEW DELHI: Market regulator Sebi has imposed a penalty of Rs 10 lakh on brokerage house Indira Securities for misusing clients' funds.
It was alleged that brokerage failed to segregate money of clients and used the money of credit balance clients for debit balance clients, and for own purpose.
The regulator carried out an investigation of broking operations of Indira Securities from April 1, 2015, to March 19, 2018, and found that the broker misutilised client funds.
By doing so, it has violated the provisions of SCRA (Securities Contracts Regulation Act), Sebi said.
In a separate order, Sebi levied a fine of Rs 3 lakh each on A Y Fazalbhoy and New Vision Group Holding for not disclosing their shareholding in Kore Foods (earlier known as Phil Corporation.
By doing so, these entities have violated the provision of SAST (Substantial Acquisition of Shares and Takeovers) and insider trading norms.