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Sebi Slaps Rs 3 Lakh Fine To BSE For SECC Violation

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Sebi Slaps Rs 3 Lakh Fine To BSE For SECC Violation
30 Jul 2022
5 min read

News Synopsis

Securities and Exchange Board of India (SEBI) on Friday imposed a penalty of Rs 3 lakh against the Bombay Stock Exchange (BSE) in violation of the Stock Exchanges and Clearing Corporations (SECC) Regulation, 2018. The decision is based on the exchange's acquisition of stakes in several subsidiaries including BSE Technologies (BTPL), Marketplace EBIX Technology (METSPL), BSE Tech Infra Services (BTISPL), BIL Reyson Futures and Indus Water Institute --without taking the required authorizations from Sebi. The show-cause notice was sent in January to BSE in January regarding this matter.

Sebi conducted an investigation to determine whether BSE's investments were not related or related to its activities as an exchange for stocks. It was alleged that BSE, through its wholly owned subsidiary BTPL, in 2009 continued to carry out its activities without the approval of Sebi and had indirectly carried out unrelated/non-incidental activities through BTISPL and METSPL, which were subsidiaries of BTPL.

The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance, Government of India. 

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