Markets regulator Sebi on Friday imposed a penalty of Rs 2 lakh on India Infoline for violating stock broker norms in the matter of United Spirits.
The Securities and Exchange Board of India (Sebi) had conducted an investigation in the matter of United Spirits Ltd regarding the suspicious trading activity of one Vimala Devi Kalantri from January 1 to April 17, 2014.
It had observed that India Infoline Ltd was the stock broker of Kalantri during the investigation period but another individual — Atul Saraogi — was trading through her account with the stock broker.
“… the noticee (India Infoline), by accepting orders in the trading account of Vimala Devi Kalantri from Atul Sarogi without any written authorization, has failed in exercising due skill, care and diligence in the conduct of its business and thereby violated… Stock Broker regulations,” Sebi said in an order.
Accordingly, Sebi has levied a fine of Rs 2 lakh on India Infoline.moneycontrol