SEBI Imposes Penalty of Rs3 Lakh on BSE
Moneylife Digital Team 04 August 2022
The Securities and Exchange Board of India (SBEI) has imposed a penalty of Rs3 lakh on BSE Ltd for indirectly engaging in activities unrelated to a stock exchange without the regulator's approval. The order came after SEBI examined investments made by BSE Ltd to ascertain whether the firm had engaged in activities which were not related to its activity as a stock exchange without approval of SEBI as on March 2021. 
 
“This is to inform that pursuant to Regulation 30 read with Schedule Ill of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we intimate that SEBI has passed an order dated 29 July 2022 imposing a penalty of Rs3 lakhs on BSE Limited. The said order is being reviewed and shall be dealt suitably as per advice of legal counsel,” the Exchange stated in a regulatory filing earlier this week. 
 
The regulator found that BIL, a separate legal entity and a wholly-owned subsidiary of BSE Ltd, had acquired an 8% stake in Indus Water Institute Ltd. The latter provides support to entrepreneurs in water and clean technologies. In its order, SEBI said that such activities are not related to the activities as carried out by the Exchange. Under the rules, SEBI's prior approval was required for this.
 
It may be recalled that in  a similar case in October 2020, SEBI had imposed a fine of Rs6 crore on the National Stock Exchange (NSE) for picking stake in six entities (including CAMS and Power Exchange India Ltd) without the regulator’s approval. 
Apart from CAMS and Power Exchange India Ltd (PXIL), NSE  had acquired stakes in NSEIT Ltd, NSDL E-Governance Infrastructure Ltd (NSEIL), Market Simplified India Ltd (MSIL) and Receivables Exchange of India. 
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