Sebi issues warning to PSE for negligence in discharge of duty
Mumbai: Market regulator Sebi today issued warning to Pune Stock Exchange for being "negligent in discharge of its duties" but did not impose any monetary penalty.
Passing an order against the bourse in a 2011 case, Sebi asked PSE "to be more cautious and perceptive in discharge of its regulatory duties".
The Securities and Exchange Board of India (Sebi) conducted an inspection of the PSE between December 29-31, 2011 on receipt of the representation from the exchange's broker forum.
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 lapses and 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.
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.
It has also been charged that out of 170 members, 46 members of the PSE have not maintained minimum base capital of Rs 1 lakh.
Sebi said: "PSE was negligent in the discharge of its functions and duties... Considering the nature of the lapses and the efforts made...The penalty of warning would be appropriate in this case."