Markets regulator Sebi on Monday slapped a total fine of over Rs 1 crore on Aditya Birla Money Ltd for violation of several market norms, including stock broker regulations.
What bothers me is this brokerage firm is owned by the reputed and well known Aditya Birla Group. The name of Tata and Birla were synonymous for integrity and trust and it bothers me no end as to the things this brokerage firm has done.
The main issue that SEBI found were
It misled the clients by understating losses and overstating profits, the watchdog’s findings observed.
During inspection, 160 instances were observed where securities were transferred from client demat to pro account.
It has done Portfolio Management Services for clients without entering into any agreement, in violation of stock broker norms.
Aditya Birla Money did not have adequate systems and internal controls to ensure due skill, care and diligence in conduct of its business and dealing with their clients, Sebi noted.
I wonder what happened to this well known and well established brokerage house that they would go so low and do things which a fly by night operator will do. Remind me of Karvy. Just cannot fathom how in the world these things happen in India when it is owned by Groups like Aditya Birla.
I tend to believe now what Saurabh Mukerjee says in India there are only a handful of companies who are clean and management integrity is absolute.
It is unbelievable that they do not care about the brand. Look at FT, what a brand name they had and what it is now in India I mean.
Every single day, losing trust in AMC and MF.
Moral of the story is that the customers like me, should be monitoring what I buy and sell and ensure that the monies debited and credited and shares debited and credited in DEMAT account is correct.
It is a shame, whoever has resorted to this and brought a brand name to this status. Hope retail investor did not lose money.
