Page 19 - Banking Finance May 2023

MUTUAL FUND

Mutual Fund

Sebi imposes Rs. 36 crore inspection of brokers based on certain communications that are issued by or
criteria and takes action as per its on behalf of such advisers and analysts
fine on PNB Finance
regulations and bye-laws of the Ex- that could influence investment deci-
Sebi imposed penalties totaling Rs changes, Minister of State for Finance, sions.
35.67 crore on PNB Finance and Indus- Pankaj Chaudhary told the Lok Sabha
The code for advertisements from ad-
tries Ltd, Camac Commercial Company in a written reply.
visers covers traditional communica-
Ltd and various other entities, includ-
As per the SEBI's orders dated Novem- tion channels as well as all electronic,
ing promoters Samir Jain and Meera
ber 22, 2019 and November 24, 2020, wired, or wireless communication such
Jain who have also been barred from
securities worth around Rs 2,000 crore as e-mail, messaging platforms, social
the securities market.
and belonging to 82,559 clients were media platforms, radio, telephone, or
Apart from the market ban, Samir Jain transferred to fully paid-up clients of any other form over the internet.
and Meera Jain have been restrained Karvy Stock Broking Ltd (KSBL). NSE
from holding any key managerial posi- and BSE have suspended trading ter- Sebi approves ASBA like
tion or associating with any listed pub- minals of KSBL with effect from De-
facility for trading in sec-
lic company. These restrictions will be cember 2, 2019 and declared it as a
in place till the two companies comply defaulter on November 23, 2020. Fur- ondary market
with the minimum public shareholding ther, based on the findings of forensic Sebi approved a framework for Appli-
requirement under Sebi norms, accord- audit report and observations of the cation Supported by Blocked Amount
ing to two separate orders. NSE, the SEBI has initiated enforce- (ASBA) like facility being made avail-
ment action against KSBL, its directors, able to investors for secondary market
As per Sebi, the two companies did not
its CEO and against two group compa-
make adequate disclosures about their trading.
nies of KSBL under its relevant Regula-
promoter entities. The companies, ASBA is an application containing an
tions, said the reply.
listed on Calcutta Stock Exchange, authorization to block the application
have also been directed to disclose
money in the bank account, for sub-
SEBI issues code for ads to
details about their promoters. scribing to an initial public offering
rein in 'finfluencers' (IPO).
NSE declares 32 brokers
The Securities and Exchange Board of Sebi said under the framework client
defaulters in 5 years India (Sebi) has issued a new adver- will continue to earn interest on his
tisement code for investment advisers
At total of 32 brokers have been de- blocked funds in his savings account till
and research analysts following the
clared defaulters by the NSE during the the time amount is debited. There will
mushrooming of 'finfluencers' who give
last five years, the Parliament was be a direct settlement with clearing
online advice on stock markets.
told. Market regulator SEBI, along corporation (CC), without passing
with the exchanges, conducts regular This code is applicable to all forms of through pool accounts of the interme-
18 | 2023 | MAY | BANKING FINANCE