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SEBI warns PSE for negligence in discharge of duty

Passing an order against the Exchange in a 2011 case, SEBI asked PSE "to be more cautious and perceptive in discharge of its regulatory duties"

July 24, 2013 1:44 IST | India Infoline News Service
Securities and Exchange Board of India (SEBI) issued warning to Pune Stock Exchange (PSE) for being "negligent in discharge of its duties". However, the regulator did not impose any monetary penalty.

SEBI conducted an inspection of PSE, during the period of December 29, 2011 to December 31, 2011, on receipt of the representation from PSE Broker Forum, the regulator said in order on Tuesday.

Passing an order against the Exchange in a 2011 case, SEBI asked PSE "to be more cautious and perceptive in discharge of its regulatory duties".

Besides, a further inspection of PSE was held in June last year for the renewal of its recognition, which was to expire in September 2012.

The inspection revealed irregularities in the functioning of the exchange and in the management of its subsidiary, PSE Securities Ltd, as also non-compliance of various SEBI regulations and directives.

Upon consideration of the inspection reports, SEBI issued a Show Cause Notice to PSE in November 2012.

The regulator in its Show Cause Notice alleged that PSE has failed to submit periodical reports, to appoint the CEO/ Managing Director, to conduct half yearly inspection of subsidiary and the sub-brokers, intervened in the functioning of PSL, committed irregularities in the composition of Investor Protection Fund.

Further, it charged that PSE also failed to make listing fee contribution of Rs 97.47 lakh to the investor services fund for the period of 1995-96 to 2002-03.

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