Mumbai: Markets regulator Sebi on Wednesday imposed a fine of Rs 1.1 crore on Todi Securities for allegedly indulging in fraudulent trade in the currency derivatives segment at United Stock Exchange (USE) as well as violating broker norms.
After taking into consideration all the facts and circumstances of the case, Sebi imposed a total fine of Rs 1.1 crore on Todi Securities for violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations and stock brokers' norms.
According to the regulator, Todi Securities had "indulged in executing such large self trades with an intent to artificially raise the volume in USD-INR contracts during the inspection period and to create misleading appearance of trading in the currency derivatives segment at USE".
Todi Securities, being a registered stock broker, had also "failed to exercise due skill, care and diligence in the conduct of its business as a stock broker".
The Securities and Exchange Board of India (Sebi) had conducted inspection of books of accounts and other records of Todi Securities during April-October 2011.
