Monetary penalty liability for stock brokers for breaches of filing, client protection, market integrity and conduct obligations. Regulation 26 sets out specified grounds for monetary penalty against a stock broker, including failure to file returns or furnish documents on Board notice; inadequate books and records; failure to issue contract notes or to deliver securities/make payments within prescribed time; charging excess brokerage; failure to maintain client account forms or to segregate and refrain from using client funds or securities; failure to redress investor grievances; dealing in or communicating unpublished price sensitive information; engaging in fraudulent or unfair trade practices; and failures to comply with Board directions, exercise due skill, obtain prior approval for change in control, or satisfy net worth and capital adequacy norms.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Monetary penalty liability for stock brokers for breaches of filing, client protection, market integrity and conduct obligations.
Regulation 26 sets out specified grounds for monetary penalty against a stock broker, including failure to file returns or furnish documents on Board notice; inadequate books and records; failure to issue contract notes or to deliver securities/make payments within prescribed time; charging excess brokerage; failure to maintain client account forms or to segregate and refrain from using client funds or securities; failure to redress investor grievances; dealing in or communicating unpublished price sensitive information; engaging in fraudulent or unfair trade practices; and failures to comply with Board directions, exercise due skill, obtain prior approval for change in control, or satisfy net worth and capital adequacy norms.
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