ICICI Securities Settles SEBI Case for ₹40.2 Lakh

ICICI Securities has settled a case with the Securities and Exchange Board of India (SEBI) involving alleged violations of stock broker regulations. The case was resolved after the company paid ₹40.2 lakh in settlement charges, according to an order issued on Monday, January 6, 2025.

Settlement Without Admission of Guilt

ICICI Securities proposed to settle the matter through a settlement order without “admitting or denying the facts and conclusions of law.”

SEBI’s adjudicating officer, Amit Kapoor, stated, “Given the acceptance of the settlement terms… the adjudication proceedings initiated against the applicant (ICICI Securities) vide show cause notice (SCN) dated May 17, 2024, is disposed of in terms of the settlement regulations.”

Details of Allegations

The case stems from allegations by SEBI that ICICI Securities violated Stock Brokers regulations in several ways:

1. Failure to Monitor Authorised Person (AP): The trading terminals of five users allocated to the company’s authorised person were allegedly operated from unapproved locations, which were not reported to the exchange.
2. Inadequate Monitoring Systems: SEBI claimed that ICICI Securities did not have adequate systems to monitor the trading practices of its authorised person, who reportedly used clients’ login credentials for online trading.
3. Non-Compliance with User Approval: The firm allegedly failed to ensure that only approved users operated trading terminals allocated to them.

These violations were cited in a show cause notice (SCN) issued by SEBI to ICICI Securities on May 17, 2024.

Settlement Process

After receiving the SCN, ICICI Securities submitted revised settlement terms, which were subsequently approved by SEBI’s High Powered Advisory Committee (HPAC). Following this, the brokerage firm remitted the settlement amount of ₹40.2 lakh, which was confirmed by SEBI.

Stock Performance

On January 07, 2025, ICICI Securities share price traded 0.61% higher at ₹845.65. at 10:08 AM (IST), while the BSE benchmark Sensex is up by just 16.12 points at 77,981.11. ICICI Securities share price reached a 52-week high of ₹921.45 on September 19, 2024, and a 52-week low of ₹671.60 on June 04, 2024. As per BSE, the total traded volume for the stock stood at 1684 shares with a turnover of ₹14.26 lakh.

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