Aditya Birla Money falls 2% as Sebi slaps Rs 10 lakh fine

NEW DELHI: Shares of Aditya Birla Money fell 2 per cent on Friday after the Sebi imposed a fine of Rs 10 lakh on Aditya Birla Money for violating norms of stockbrokers.

Following the development, the stock fell 1.68 per cent to end the day at Rs 79 on BSE.

Sebi conducted an inspection of books and records of the broker from April 2010 to August 2011 to ascertain whether it had carried unregistered PMS activities, before obtaining registration as PMS in July 2010, through its 'Option Maxima Strategy', PTI reported.

"In the current scenario, noticee (Aditya Birla Money) did not have any agreement with its clients to act as their portfolio manager, as it was demonstrated and accepted that noticee was advising its clients, providing incidental advice is allowed in broker regulations," Sebi Adjudicating Officer Sahil Malik said in an order.

"However, I note that noticee was the one who was directing its clients as well, i.e., it was the one who was taking the trading decision based on its expert team (centrally located), ticket size was almost similar as that prescribed under Sebi Portfolio Manager Regulation," PTI quoted him as saying.