SEBI has charged a fine of 12 Lakh to the NSE Date and analytics for not following its guidelines and latest rules. The inspection was completed in September of last year. After finding the guilty, this fine was imposed on the NSE Data and Analytics. This is a big amount as a penalty.
The Securities and Exchange Board of India (SEBI) is a free and regulated body that manages all online trading companies, just as the RBI controls all banks and financial institutes. This was charged the penalty from the NSE because of the customer KYC fraud and misleading.
KYC means when a customer provides the proper details while opening the account like an Aadhar Card, PAN, address proof, Photo, Signature etc. When banks are financial institutes that provide the service without verifying the customer’s KYC and provide the financial services. In that case, these types of problems come to the SEBI and monitoring them and not finding the proper details immediately marks the fine.
Reasons of Penalty
These are the valid reasons for imposing the penalty to the NSE as amount of the 12 Lakh. As this amount is not a big amount for this national stock exchange but penalty is the penalty. Below are a few major points of implementing the penalty or fine charged.
- As per the SEBI, NSE does not have the proper infrastructure to maintain the customer KYC or the technology to provide the proper details. This was the one reason for imposing the penalty.
- After submission of the KYC NSE has not provided the Acknowledgement to the customer and takes more time. This means the service of the acknowledgement is very delayed.
- Irregularities in cybersecurity audits were noted, including unaddressed vulnerabilities and deficiencies in data centre security practices.
Above is the mentioned about the NSE penalty charged reasons. If you are preparing for the govt exam especially banking this article will help you to score a good number.
About the SEBI
- SEBI Full Form: Securities and Exchange Board of India
- Founded: April 12, 1988
- Headquarters: Mumbai, Maharashtra