The ICICI Securities made settlements with the market regulator Securities and Exchange Board of India (SEBI) for alleged misuse of terminals and lapses in monitoring its authorised persons.
The settlement orders were issued on Monday by the market regulator and settlement amount was recommended by a high-powered advisory committee and approved by a panel of whole-time members of SEBI.
The order came after ICICI Securities proposed to settle the matter without “admitting or denying the facts and conclusions of law”, through a settlement order and paid Rs 40.62 lakhs for settlement of alleged violation of stock brokers rules with capital markets regulator.
The market watchdog had issued show cause notices (SCN) to ICICI Securities in May 2024 for failure to failed to monitor its authorised person (AP), as trading terminals of five users allocated to the AP being operated from unknown places were not reported to the exchange.
“Only approved users are allowed to operate the trading terminal allocated to them and ICICI Securities did not have systems to monitor the trading practices of its authorised persons (AP) as the AP was using login credentials of clients for online trading,” alleged the SCN.
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