Market regulator Securities and Exchange Board of India (Sebi) today imposed a fine of Rs 4 lakh on DSE Financial Services Ltd (DSFSL)for violating rules of functioning of its office and belongings.
The DSFSL is a subsidiary of the Delhi Stock Exchange Ltd (DSE) and during the relevant period it was registered with Sebi as member broker of the National Stock Exchange of India Ltd.
“In exercise of the powers conferred upon the adjudicating officer under section 15 I of the SEBI Act…a penalty of Rs 4,00,000 has been imposed under sections 15F and 15 HB of the Sebi,” the market regulator said in a notification.
“Therefore,considering all the facts and circumstances of the case,… a suitable penalty (Rs 4,00,000) needs to be imposed on the noticee for the aforesaid violations or non-compliances,” it added.
The regulator had conducted an inspection of DSFSL during February 8-23,2007 with regard to its activities as a stock broker and also as a depository participant.
“It was also observed during the inspections that DSFSL did not monitor the physical access to its server room. As a result,unauthorised personnel could freely enter the area of DPM terminals which could prove to be a safety hazard,” it said.
Sebi further said that the objectives of such inspections is to point out the lacunae or deficiencies in the functioning of the subsidiaries of the stock exchanges.
“…so they can rectify the same and it do not come in the way of fair functioning of the securities market or hamper the interests of the investors and other market participants,” Sebi said.