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Reliance Securities Fined Rs 7 Lakh by SEBI for Broker Lapses

8 April 20251 min read
BANKING & FINANCERelianceSecurities FinedRs 7 Lakh by SEBIfor Broker Lapses8 April 2025safalsetu.com

Why in the news

SEBI penalised broker Reliance Securities after an inspection exposed gaps in handling client money and records.

Key facts

  • Penalty: Rs 7 lakh; inspection period: 22 Dec 2022 – 24 Jan 2023.
  • Inactive-client funds missed quarterly settlement in 122 of 127 cases.
  • Since September 2021, no settlement after 30 days of inactivity in 10,102 instances touching 8,527 clients.
  • Margins collected were wrongly reported to exchanges, and valid proof of orders was missing.

SEBI view

The lapses were called structural negligence, not isolated errors.

Exam angle

  • Breach areas: client funds, margin reporting, audit trail.

Test yourself

1. What penalty did SEBI levy on Reliance Securities for stockbroker norm violations?

The notes state a Rs 7 lakh penalty.

2. How many unique clients were affected by Reliance Securities' failure to settle inactive client funds after 30 days?

The 10,102 instances affected 8,527 unique clients.

3. Which of these was among the lapses found at Reliance Securities by SEBI's inspection?

Margins collected were incorrectly reported to exchanges.

This topic is part of Daily Current Affairs 8 April 2025 (25 topics).

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