SEBI: Market regulator SEBI has taken action against a stock broker, whose more than 1100 clients were shown as dependent children, while their actual age was between 34 and 100 years. Stock broker means a firm or individual who, as a trading member, acts as a middleman between the investor and the stock exchange.
This code is given to every investor
Every investor is given a unique client code (UCC) by the stock broker and the contact details of each of them must be different from each other. This contact detail is used by the stock exchange to update investors about the transactions taking place in their account to help ensure that no authorized trading is being done from their account.
Shocking revelation in SEBI investigation
Multiple members of the same family, such as spouses, children or parents, can share the same UCC code. Like two or three clients having the same phone number or email ID etc. According to a Moneycontrol report, while investigating stock-broker Stockholding Services Limited, SEBI found that this stock broker had shown 1,103 of its clients issued UCC as dependent children, while their age was between 34 to 100 years.
SEBI imposed a fine of Rs 9 lakh
On January 7, SEBI, under one of its orders, asked Stockholding Services to pay a fine of Rs 9 lakh for violating the rules. The violations also included not exercising due diligence while collecting data, uploading mismatched relationship data on both the stock exchanges, uploading mismatched contact details, uploading contact details of an authorized person instead of the client and uploading wrong bank details of the client on the exchanges. .
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