No doubt Anil Ambani has been always in the news for negative aspects for his companies and SEBI in its investigation had found that its applicant did not have documentary proof like leave and lease licenses approved for payments, rent or ownership of office. Also, the fact that the applicant collected cheques in the name of Reliance Money, applicant collected excess securities transaction tax from clients during 2006-2008. All these are some of the violations, which SEBI has found in it's investigation. The prima facie violations of code of conduct on behalf of Reliance Securities were established and it led to proceeding of the investigations.
Now Sebi has given a consent for settling the dispute and SEBI has basically agreed upon is that Reliance Securities will stop new registrations of clients for the next 45 days. The second thing, which they have agreed to, is to pay a fine of Rs 25 lakh. The third one is that they are going to spend nearly Rs 1 crore on investor education going forward.
This is a fact as we have a trading account with Reliance securities and below screen shot has been received in the email and Reliance securities is now complying with the order in the totality as it says that old trading clients are not affected.
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