Sebi has levied a penalty of Rs 3 lakh on BSE for indirectly engaging in works that were unrelated to its activities as a stock exchange without the regulator's approval. The order came after Sebi examined investments made by BSE to ascertain whether the firm had engaged in activities which were not related to its activity as a stock exchange without approval of Sebi as on March 2021.
The regulator found that BIL, a separate legal entity and a wholly-owned subsidiary of BSE, had acquired an 8 per cent stake in Indus Water Institute. The latter provides support to entrepreneurs in water and clean technologies. As per Sebi’s order, such activities are not related to the activities as carried out by the exchange. Under the rules, Sebi's prior approval was required for the same. For the violation of not seeking prior approval, the regulator has imposed a fine of Rs 3 lakh on the exchange.
BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds. It also has a platform for trading in equities of small-and-medium enterprises (SME).