MUMBAI: Markets regulator Sebi has discovered dealer Stockholding Services (previously SHCIL Services, a subsidiary of Stockholding Corp) had failed to hold out correct due diligence of its purchasers. As a consequence, 1,103 of its purchasers had been declared as ‘dependent youngsters’ aged between 34 years and 100 years. Sebi has fined the dealer Rs 9 lakh.
The regulator had carried out an inspection of Stockholding Services between April 2022 and June 2023. During the inspection, it discovered that the dealer had didn’t do correct due diligence for a number of of its purchasers.
In one in all its replies to Sebi, the dealer stated that it appeared that these purchasers had been having an absence of readability about offering a declaration of the cell numbers and electronic mail IDs, together with offering relationship particulars. “We have a number of large old accounts of many senior citizens and others who did not have their individual email ID and mobile numbers at the time of account opening, when the regulatory requirements of exchanges were not applicable.”
