Court Practice News

Sebi penalises YES Securities for wrong reporting of margin, other discrepancies, ET LegalWorld | Court Practice News

Capital markets regulator Sebi has imposed a penalty of Rs 5 lakh on YES Securities (India) Ltd for wrong reporting of margin and discrepancy in the computation of client’s net worth. It has been directed to pay the fine within 45 days, the Securities and Exchange Board of India (Sebi) said in its order.

The order came after Sebi, jointly with the Stock exchanges — NSE, BSE and MCX — conducted inspection of documents and other records of YES Securities (India) Ltd to verify the possible violation of stock brokers’ rule.

In its order, Sebi found several violations, including wrong reporting of margin and discrepancy in reporting of net worth of clients by YES Securities, during July 2021 to March 2022.

The regulator said the brokerage house sent the retention statements after the prescribed time of five days and also mailed the statements of accounts to wrong email addresses.

Further, it was found that the brokerage house had projected a wrong reporting margin of Rs 2,083.

In addition, the regulator noted lapses on the part of YES Securities for not having maintained adequate margin for the client.

“There was a discrepancy in the computation of net worth submitted by the noticee (YES Securities) to the exchange… the noticee had overstated the net worth to an extent of Rs 1,89,45,070.32,” Sebi said in its order on Wednesday.

Through such acts, YES Securities violated brokers’ rule and accordingly Sebi levied a fine of Rs 5 lakh on it.

  • Published On Sep 28, 2023 at 06:46 PM IST

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