Sebi's review of broker penalty nears finalisation

The Securities and Exchange Board of India's (Sebi's) steps towards rationalisation of penalties imposed on stock brokers is nearing finalisation.

- KHUSHBOO TIWARI

A sub-committee to review the penalties had submitted its suggestions to the market regulator last week, said people aware of the developments.

The committee has recommended issuing only warnings instead of penalties if the violations are not serious in nature.

Further, the suggestions include segregation of lapses due to technical or operational issues and those which are intentional. In case the lapses are intentional, a more serious action has been recommended. Additionally, only the exchange where the stock broker is a trading member may levy the penalty in a bid to avoid multiple penalties for the same issue. The committee has also suggested other nomenclature for penalties in cases where the fines are not in the nature of a penalty.