SEBI probes over 200 brokers to check non-compliance in FY13

The market regulator said that it has examined 162 stock brokers and 39 sub-brokers in FY13

January 01, 1970 5:30 IST | India Infoline News Service
In order to check any possible non-compliance, SEBI (Securities and Exchange Board of India) has inspected more than 200 stock brokers and sub-brokers during the financial year 2012-13.

The market regulator said that it has examined 162 stock brokers and 39 sub-brokers in FY13 as against 69 brokers and 12 sub-brokers in FY11. However, the names of the entities have not been provided.

"The focus of the inspections included themes such as compliance of norms regarding Anti-money Laundering, settlement of accounts of clients on timely basis, segregation of clients and proprietary funds/securities, KYC norms, clearing operations, etc," according to SEBI's 2012-13 annual report.

"Rapid developments and greater integration of the financial markets together with improvements in technology and communication channels continue to pose serious challenges to the authorities and institutions dealing with anti-money laundering and combating financing of terrorism (AML and CFT)," SEBI said.

SEBI said it has been taking measures to prevent money laundering and terrorist financing through the stock market.

SEBI has included the AML/CFT risks risks as part of its inspection of market intermediaries, such as stock brokers, depository participants and mutual funds.

The regulator has carried out 40 special purpose inspections of stock brokers to check their compliance with the AML/CFT framework. Further, 35 inspections of stock brokers and six depository participants focusing on compliance with KYC norms were carried out in 2012-13.

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