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Sebi imposes Rs 6 lakh penalty on MCX in data entry norms case
Capital markets regulator Sebi has imposed a penalty of Rs 6 lakh on Multi Commodity Exchange (MCX) for flouting norms in a case pertaining to data entries of Sikkim-based clients.
The matter relates to incorrect input of State code and City code as Sikkim by seven trading members of MCX in the UCC (Unique Client Code) database.
In its order, Sebi found that MCX imposed a penalty of Rs 10,000 per client on these trading members for wrong entries in June 2022.
"The instant case pertains to incorrect input of State code and City code as Sikkim which does not cover under Material Discrepancies. Hence as per the ToR Member & Core SGF Committee (MCSGFC) is the authority to formulate policies for regulatory actions," Sebi said in its 58-page order on Tuesday.
It means MCX was required to take it to the committee which is empowered to frame policy without imposing a penalty under material discrepancy.
In its order, Sebi noted that MCX has not complied with certain clauses Term of ...