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Reliance Securities has settled SEBI's case against it through the consent route, paying a total amount of Rs 25 lakh.
In addition, Reliance Securities would spend Rs 1 crore on an investor education and awareness programme. This would be done to develop materials focusing on making investors more aware of their rights in connection with internet-based trading in the securities market. This should be done within six months from the date of receipt of the consent order, said SEBI.
On completion of six months, the company has to submit an auditor's certificate to the satisfaction of SEBI in this regard.
SEBI had found twenty different types of procedural irregularities on conducting an inspection of the books of accounts and other records of Reliance Securities and issued a show cause notice to the company on August 9, 2010.
Reliance proposed consent terms while enquiry proceedings were in progress on September 14, 2010 and revised terms on December 7, 2010. SEBI's high powered committee accepted the revised terms which stated that the case would be settled on payment of Rs 25 lakh and that the company would not register new clients for 45 days.
Reliance Securities remitted Rs 25 lakh on June 1, without admission or denial of guilt. This consent order dated June 9 shall come into force after seven days from the date of receipt of the order.
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