Market regulator SEBI has taken action against a stock broker, whose more than 1100 clients were shown as dependent children, while their real age was between 34 to 100 years. Stock broker means a firm or person, who acts as a middleman between the investor and the stock exchange as a trading member.
This code is given to every investor
Every investor is given a Unique Client Code (UCC) by the stock broker and the contact details of each of these must be different from each other. This contact detail is used by the stock exchange to update investors about the transactions taking place in their account to help ensure that no authorized trading is being done from their account.
SEBI's investigation reveals shocking revelations
Several members of the same family such as husband-wife, children or parents can share the same UCC code. For example, two or three clients can have the same phone number or email ID, etc. According to a Moneycontrol report, while investigating stock-broker Stockholding services Limited, SEBI found that this stock broker showed 1,103 of its clients issued UCCs as dependent children, while their age ranged between 34 and 100 years.
SEBI imposed a fine of Rs 9 lakh
On january 7, SEBI, under one of its orders, asked Stockholding services to pay a fine of Rs 9 lakh for violating the rules. The violations included not taking much care while collecting data, uploading mismatched relationship data on both stock exchanges, uploading mismatched contact details, uploading contact details of an authorized person instead of the client and uploading wrong bank details of the client on the exchanges.
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