After receiving a settlement payment of Rs 31.20 lakh, Kantilal Chhaganlal Securities settled a case involving an alleged violation of SBSB (Stock Broker and Sub-brokers) norms with market regulator Sebi on Monday. According to a Sebi order, Kantilal Chhaganlal Securities had proposed ending the proceedings “without admitting or denying the findings.”
“The instant adjudication proceedings initiated against noticee vide SCN dated May 25, 2022 is disposed of,” the market regulator stated in its settlement order.
For the alleged violation of SBSB regulations, adjudication proceedings had been initiated by the Securities and Exchange Board of India (Sebi).
On May 20, 2022, Sebi issued a show cause notice, claiming that the noticee engaged in illegal trading and that it had not inspected the sub-broker as required by stock exchanges in violation of the rules.
The noticee submitted a settlement application to Sebi to settle the case while adjudication proceedings were ongoing. The regulator suggested paying Rs 31.20 lakh to settle the immediate proceedings.
For engaging in dishonest practices in the preferential allotment of Aadhaar Ventures India Ltd (AVIL) shares, Sebi imposed a separate fine of Rs 6 lakh on four entities.
Sebi conducted an investigation into AVIL’s funding of the preferential allotees for the preferential allotment and issued the order.
Between January 2009 and April 2015, the company distributed several preferential allocations.
However, the current case’s focus was on AVIL’s funding of the preferential allotees in relation to the preferential allotment from March 2013.
Between January and March 2013, an investigation was conducted.
