Sebi suspends registration of Jagruti Securities for 1 yr

New Delhi, Jan 13 () Markets regulator Sebi on Monday suspended the registration of stock broker Jagruti Securities Ltd for one year for violating Stock Brokers Regulations.

The regulator in an order said, "The Noticee had not maintained high standards of integrity and fairness in the conduct of its business and had failed to redress investor grievances within the stipulated time. The Noticee has also failed to co-operate with the inspection team and submit the documents sought during the inspection".

Sebi ordered inspection in December 2006 after it received certain complaints against Jagruti Securities regarding non-payment of funds and securities to the clients.

The probe found that the stock broker failed to pay nearly Rs 17.9 lakh to one of its clients, did not make timely payment of funds and delivery of securities within the stipulated time after pay-out, and also failed to redress investor grievance within the specified time.

Consequently, Sebi suspended the registration of the broker for one year.

In a separate order, Sebi levied a fine of Rs 5 lakh on Venky Hi-tech Ispat Ltd for indulging in fraudulent trading in the illiquid stock options segment on the BSE.

The orders follow an investigation conducted by the Securities and Exchange Board of India (Sebi) in the stock options segment of the BSE from April 2014 to September 2015 after it observed large-scale reversal of trades that led to creation of artificial volume. SRS BAL