Sebi cancels Fairwealth Commodity Broking's registration for misusing funds

Capital markets regulator Sebi on Wednesday cancelled the registration of Fairwealth Commodity Broking Pvt (FCBL) as a broker for misusing clients' funds. This order would come into force with immediate effect, the Securities and Exchange Board of India (Sebi) said. The present matter emanates from the findings in respect of the inspection carried out by Sebi of FCBL during the period from April 2017 to December 2018. In its probe, Sebi found "FCBL had carried out acts that resulted in failure to segregate client funds from own funds; misuse of clients' funds; non-settlement of clients' funds; providing wrong/incomplete enhanced supervision data; improper client registration process; and incorrect mobile number and email ID". The brokerage house on three trading days, out of the sample 36 trading days chosen for inspection, had misused the funds of clients, the regulator said in its 25-page report. Also, there were many instances where settlement of funds of clients hadn't happen

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