SEBI slaps Rs 1.02 crore fine on Aditya Birla Money, gives company 45 days to pay
The Securities and Exchange Board of India (SEBI) has imposed a fine of over Rs 1 crore on Aditya Birla Money Limited for violating market regulations, including the stock broker regulation. Proceedings in this regard were initiated against Aditya Birla Money in March 2019 based on a joint inspection conducted by SEBI, BSE, NSE and the depositories. A special purpose inspection was also conducted on the company by the market regulator in March 2018. Based on the findings of these inspections, SEBI initiated this action. SEBI said, any registered stockbroker must maintain high standards of integrity and have due diligence and comply with statutory requirements. Also, under normal circumstances, the client should not give any investment advice which was not followed by him.
SEBI said that Aditya Birla Money Limited has been providing portfolio management services to clients without any compromise in violation of stock broker regulation. It said that Aditya Birla Money did not have adequate systems and internal controls to ensure proper skill and care in conducting its business and dealing with its customers. The company has been given 45 days to pay the total penalty of Rs 1.02 imposed by the market regulator.
