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Sebi penalises Swastika Investmart for misusing clients’ securities, funds
Sebi on Tuesday slapped a fine of Rs 15 lakh on Swastika Investmart Ltd for misutilisation of clients' securities and funds.
The order came after the Sebi conducted an inspection of Swastika Investmart Ltd (SIL) for a period from April 2020 to June 2021.
Based on the findings of the examination, the regulator initiated adjudication proceedings against Swastika for the alleged violations of Securities contracts (regulations) act (SCRA) and other market norms.
In its order, the Securities and Exchange Board of India (Sebi) found that Swastika had misutilised the funds of its credit balance clients for the purpose of settlement/ margin obligations of debit balance clients.
The amount of mis-utilisation of credit balance client funds ranged between Rs 6.44 lakh to Rs 1.38 crore.
In a separate order, the regulator imposed a fine of Rs 15 lakh on 15 entities for flouting the regulatory norms in the matter of Matra Kaushal Enterprise Ltd (MKEL). The entities are the promoters of MKEL.
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