New Delhi, March 13 The capital markets regulator, Sebi, imposed a fine of Rs 10 lakh on Anand Rathi Share and Stock Brokers for multiple violations of regulatory norms.
The order came after Sebi conducted a thematic inspection of Anand Rathi Share and Stock Brokers to examine their compliance with Sebi's Cyber Security framework. The inspection was conducted from April 2023 to August 2024.
During the inspection of the broker's systems and processes, Sebi observed several deficiencies.
These included inadequate capacity monitoring mechanisms, weak password control implementation, a lack of data leakage prevention mechanisms, and failure to enable multi-factor authentication for some users, as per the order.
Sebi also noted deficiencies in vulnerability assessment and penetration testing (VAPT) coverage. It observed that a cyber incident involving unauthorized access was not reported to the stock exchanges within the stipulated six hours of detection, as required under the cybersecurity framework.
After examining the inspection findings, the markets regulator's adjudicating officer concluded that multiple violations of Sebi's norms and stock brokers' regulations were established.
Accordingly, the regulator imposed a penalty of Rs 10 lakh on Anand Rathi Share and Stock Brokers. The broker has to pay the fine within 45 days.