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Sebi has suspended the registration of Alka Securities Ltd for two years, citing that the brokerage firm acted in “utter disregard” of its directions pertaining to taking new clients.
The market regulator in an order on October 8 said that it would suspend the certificate of registration of Alka Securities Ltd (ASL) for a period of two years. In another order on the same day, Sebi suspended the entity for a period of two months.
“Both the orders shall operate concurrently,” Sebi noted.
Securities and Exchange Board of India (Sebi) further said stock borker was involved in multiple defaults and violations and different enforcement actions have been taken against it by the regulator.
The regulator found that the brokerage firm had traded on behalf of two new clients —— Anna Adhikarao Gaikwad and Jayant Shah —— on March 30, 2010, April 06, 2010 and April 07, 2010 on the National Stock Exchange (NSE) despite Sebi directive to the company not to take fresh clients were in force.
After conducting a probe in the stock trading of ASL during November 2008 to March 2009, Sebi through in its interim order dated July 28, 2009 had issued various directions to the firm including not to take fresh clients with immediate effect, until further orders.
Moreover, the directions issued in the interim order against were confirmed by Sebi via an order dated October 16, 2009.
In the two months suspension case, Sebi said ASL failed to show compliance with various provisions related to stock broker norms.
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