Indiabulls Securities has been slapped a penalty of Rs 4 lakh by the market regulator - SEBI for allegedly violating various norms for stock brokers including executing trades in clients account without their instruction.
Of 372 complaints 82 were resolved/ responded after the stipulated 30 days time frame. Majority of these 82 complaints were for executing trades in clients account without their instruction and squaring off of client's positions even after sufficient ledger balance/margins. Besides this, Indiabulls Securities, as per SEBI, has also accepted orders from client's financing entity without the instructions of the client and had furnished incomplete data to SEBI's inspection team.
An inspection of the books of accounts, documents and various other records maintained and furnished by the broker was conducted by the market watchdog at the entity's branch offices in Mumbai, Kolkata, Delhi and Chennai between September, 2009 and January, 2010.