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  • DAILY CURRENT AFFAIRS:SEBI impose fines on BSE and NSE For Laxity in Karvy Stock Broking Case

SEBI impose fines on BSE and NSE For Laxity in Karvy Stock Broking Case

Tags: Economics/Business

Market regulator Securities and Exchange Board of India (SEBI) has fined Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) for their  failure  in detecting the misuse of clients' securities worth Rs2,300 crore by Karvy Stock Broking Ltd (KSBL).

  • SEBI has imposed a fine of Rs3 crore on BSE and Rs2 crore on NSE.

  •  The case going back to 2019 relates to the KSBL misusing its clients' securities worth Rs 2,300 crore belonging to more than 95,000 clients It used these securities to take loans from banks and Non-Banking Finance Company(NBFC) without the knowledge of the clients .

  • The funds were used by KSBL for itself and its group entities.

  • SEBI noted that KSBL, being a member of BSE and NSE, was under regulatory supervision of the exchanges and both the exchanges failed to perform its duties .

SEBI 

Securities Exchange Board of India(SEBI) was set up on 12 April 1988 and it was given statutory status by the SEBI Act 1992 on 30 January 1992.

  • It comes under the Ministry of Finance , Government of India .

  • It is the regulator of the Capital market and Commodities market in India .

  • The first SEBI chairman was Dr S A Dave (1988-90)

  • Madhabi Puri Buch is the current and 10th Chairperson of the SEBI.

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